Central Bank of Nigeria
Obinna Chima with agency report
Nigeria’s budget deficit more than doubled in the third quarter to N459.1 billion, a report by the Central Bank of Nigeria (CBN) has revealed.
According to the report, Nigeria’s budget deficit jumped from N211.8 billion in the previous three months and N161.1 billion in the third quarter of 2011.
“The deficit was financed mainly from domestic sources, particularly through the issuance of additional Federal Government of Nigeria bonds,” the CBN said.
The report published by Bloomberg showed that the country increased its target for this year’s budget deficit to 2.97 percent of economic output in February, from a 2.77 per cent target announced in December 2011, after it added N733 billion of spending on gasoline subsidies, according to the Ministry of Finance.
President Goodluck Jonathan had while presenting the nation's 2013 budget recently said the country wanted to narrow the fiscal deficit to 2.2 percent of Gross Domestic Product (GDP) next year .
During the period, N26.2 billion were withdrawn from the excess crude account “to bridge the shortfall in revenue for the period,” leaving $9.3 billion in the account, in which Nigeria saved revenue from crude sales higher than the budgeted price, the bank said. The government aims to raise savings in the account to $10 billion to provide a buffer against global economic uncertainty.
According to the report, net foreign-currency inflows through the bank in the quarter stood at $5.8 billion, with inflows at $14.4 billion and outflows at $9.2 billion.