The Federal Government has announced a notable revenue performance of N12.6 trillion as of August this year. Mr. Tanimu Yakubu, the Director-General of the Budget Office of the Federation, shared this information during a meeting with foreign investors on the sidelines of the ongoing Annual Meetings of the IMF and World Bank in Washington, D.C.
Yakubu noted that the pro-rata budget projection for August was N13.1 trillion, while the actual revenue performance stood at N12.6 trillion, resulting in a deficit of N500 billion. He stated, “Revenue Budget by August was 13.1 trillion, and actual performance was N12.6 trillion, leaving us with a deficit of 500 billion. Aggregate revenue target was missed by 3.6 percent, so we are doing well.”
In discussing fiscal performance, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized that the current situation is an improvement compared to the circumstances when the present administration took over. He remarked, “Fiscal performance, where we met things, was huge debt servicing, costing nearly 100 percent of revenues. We have cut it down by half this year to about 60 percent or so, which is still eye-wateringly high, but we are coping with it.”
Edun further explained that the budget deficit has been reduced from 6.5 percent of GDP to approximately 4.4 percent, and he expressed optimism about achieving a target of 4 percent of GDP for 2024. He highlighted the administration’s commitment to enhancing the revenue side of the budget, with an ambitious target of reaching 23 percent of GDP. His team aims to reset the macroeconomy to foster sustained development and rapid growth.