• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Economy Budget
Mrs. Zainab Ahmed, FEC reviews Ajaokuta-Kaduna-Kano gas project contract, approves $2.571 billion, Don’t over heat bleak economic outlook – Finance Minister, FAAC meeting ends abruptly as members disagree over revenue allocation for FG, States, LGs, Nigeria’s total debt portfolio as at December 2019 stands at N27.4 trillion, Accountant-General’s office fire outbreak: FG reacts to claims of missing N700 billion

Zainab Ahmed, Finance Minister

FG posts 27% revenue shortfall in 2020 as budget deficit hit N6.1 trillion

Research TeambyResearch Team
3 years ago
in Budget, Politics, Spotlight
Share on FacebookShare on TwitterShare on Linkedin

The Federal Government of Nigeria reported a revenue shortfall of 27% in 2020, increasing the amount of money borrowed by the government to finance its budget.

The information was made available by the Minister for Finance, Zainab Ahmed, during a public presentation of the 2021 FGN Approved Budget – Breakdown & Highlights which was done via Zoom, an online platform for virtual meetings.

READ: Nigeria is falling into China’s debt trap

According to the data seen by Nairametrics Research, the FG generated an actual revenue of N3.9 trillion during the year, compared to its targeted revenues of N5.36 trillion. The presentation also indicated that the numbers were preliminary and would be updated once the reconciliation process was concluded.

READ: IMF wants Nigeria to cut tax exemptions and incentives

Oil Revenue Performance

In the report, total oil revenue was N1.5 trillion, about 50% higher than its budget of N1 trillion.

  • The government also reported that it received a dividend of N144 billion from its shareholdings in NLNG, up from N80.3 billion a year earlier.
  • The fall in oil prices in 2020 forced the government to revise its benchmark crude oil target price to $28 per barrel from the $57 per barrel originally set in the 2020 budget.
  • However, average oil prices sold during the year by the government was $43 per barrel as oil prices recovered in the second half of the year as the lockdown eased globally.
  • In terms of crude oil production output, the FG reported a total of 1.79 million barrels per day as against the revised 1.8 million barrels per day projected.
  • It is important to add that the increased oil revenue was also because of the devaluation of the exchange rate, which rose from a budget of N360/$1 to N379/$1 in the third quarter of the year.

READ: Nigeria records lowest remittances from abroad8 since 2008

READ: DMO discloses facts about Chinese loans to Nigeria, states terms of the loans

Non-Oil Revenue Performance

Non-Oil revenue performance did worse with revenues falling 21% to N1.2 trillion. Non-oil revenues are mostly taxes, levies, and customs revenues.

  • Company Income Tax fell 18% to N673 billion while VAT revenue suffered a 32% drop to generate a N196 billion in revenue.
  • Customer revenue also fell 12% to N396 billion despite the effect of the border closure.
  • The Nigerian economy was shut down in April 2020 and operated with several limitations amidst government requirements for Nigerians to maintain social distancing and avoid crowded areas.
  • This impacted business operations across the country, indirectly affecting their ability to generate revenues that would have been taxed.
  • Perhaps the biggest setback in revenues was its earnings in signature bonuses, falling to N78 billion from N350 billion.

READ; FG’s unsustainable budget deficit and debt service cost

Despite the revenue shortfalls, the government still managed to outspend its expenditure targets, reporting a total of N10 trillion compared to a target of N9.9 trillion which was appropriated.

  • The report also reveals that of the expenditure, N3.27 trillion was for debt service, and N3.19 trillion for Personnel cost, including Pensions.
  • It also revealed that 1.80 trillion had been released for capital expenditure, which is about 89% of the provision for capital.
  • Out of this, up to N118.37 billion was released for COVID-19 capital expenditure.

READ: Power Sector: 11 DisCos recorded N1.67 trillion revenue shortfalls in 5 years 

READ: Nigeria needs $3trillion in 30 years to reduce infrastructure deficit – Osinbajo

Fiscal Deficit

The result of the revenue shortfall and increased expenditure is a fiscal deficit of about N6.1 trillion as against the N4.6 trillion budgeted by the government.

  • To fund this, they borrowed N2 trillion from the domestic market and another N1.2 trillion from foreign markets.
  • The balance N2.8 trillion was obtained from the CBN.
  • The government plans to incur a budget deficit of N5.60trillion for 2021, representing 3.93% of GDP.
  • It will fund this via N2.34 trillion each in domestic and foreign borrowing and another N709 billion from multilateral sources.
  • It hopes that about N205 billion from privatisation proceeds will support its efforts to close the deficit. The government did not report any income from privatisation proceeds in 2020 even though it budgeted N126 billion.

Download Nairametrics App for breaking news and market intelligence.
   
Tags: BudgetBusiness NewsFeaturedNigeria News
Research Team

Research Team

The Research Team at Nairametrics meticulously monitors, gathers, curates, and administers an extensive repository of both macroeconomic and microeconomic data originating from Nigeria and across Africa. Utilizing a variety of presentation formats—including documents, tables, and charts—our analysts disseminate key findings through the Nairametrics platform. Additionally, we regularly release insightful, research-driven articles that offer in-depth analyses of economic trends and indicators.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
Kwakol
Abbey
IMT

Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • France to recall Ambassador, end all military presence in Niger, says Macron  
  • NSSF highlight commitment to mobilizing funds to improve healthcare
  • NiMPROP to take 14m children back to school and 16.5m Nigerians out of poverty

Follow us on social media:

Recent News

France announces plans to provide 10 million units of COVID-19 vaccine doses to Africa

France to recall Ambassador, end all military presence in Niger, says Macron  

September 24, 2023
NSSF highlight commitment to mobilizing funds to improve healthcare

NSSF highlight commitment to mobilizing funds to improve healthcare

September 24, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In