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FG Recorded N2.23trn Fiscal Deficit In Q4 2021 – CBN

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The Central Bank of Nigeria (CBN) says the federal government recorded a N2.23 trillion fiscal deficit in the fourth quarter (Q4) of 2021.

The apex bank said this in its economic report for the fourth quarter of 2021.

A fiscal deficit is a shortfall in a government’s income compared with its spending. By implication, a high fiscal deficit means that the government is spending beyond its means.

The report said the 12 percent contraction in fiscal deficit followed a decline in aggregate expenditure in the fourth quarter of 2021.

“Following a decline in aggregate expenditure in the fourth quarter of 2021, the fiscal deficit of the FGN contracted by 12.0 percent to N2,232.33 trillion, relative to the preceding quarter,” the report states.

“Non-oil revenue maintained its dominance, accounting for 60.8 percent of the total collections, while oil revenue constituted the balance of 39.2 percent.

“The provisional federal government of Nigeria (FGN) retained revenue, at N1,265.34 trillion, declined by 36.6 percent and 3.2 percent, relative to the budget benchmark and the preceding quarter, respectively, reflecting the persistent revenue challenge over the past two years.”

The report added that the federation receipts in the fourth quarter fell below benchmark due to the shortfalls in oil revenue.

“The shortfalls were largely the result of poor performances in some oil revenue components. Non-oil maintained its dominance of gross federation receipts in the period, accounting for 60.8 percent of the total collections, while oil revenue constituted the balance of 39.2 percent,” the report added.

“This is a deviation from the 51:49 non-oil versus oil revenue mix, projected in the 2021 budget.

“Federation receipts in the fourth quarter of 2021 declined, following shortfalls in oil revenue. At N2,844.73 trillion, provisional federation receipts fell below the quarterly benchmark and the level in the preceding quarter by 7.5 percent and 0.7 percent, respectively,” the report added.

According to the report, growth prospects for the Nigerian economy remain positive but fragile in the near term, on the back of a rebound in manufacturing activities, improvements in vaccination rates, and the supportive impact of CBN interventions on growth-enhancing sectors.

CBN, however, said the lingering security challenges and the delayed implementation of the Petroleum Industry Act (PIA) are the major downside risks to the outlook.

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FCT Resident Doctors Begin 7-Day Warning Strike

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The Association of Resident Doctors in the Federal Capital Territory (ARD-FCT) commenced a seven-day warning strike on Monday to demand urgent reforms in the territory’s health sector.

In a communiqué signed by President George Ebong and other executive members, the doctors described the FCT health system as fraught with chronic systemic failures, calling for immediate and comprehensive reform.

Ebong highlighted the dire working conditions: severe manpower shortages, malfunctioning equipment, unpaid allowances, unpaid salaries, and delayed promotions. Many doctors are reportedly overburdened, covering multiple departments simultaneously, a scenario he warned could precipitate a systemic collapse.

The ARD-FCT has issued a one-week ultimatum to the FCT administration to begin implementing meaningful improvements—particularly in staffing and welfare—or face escalation to an indefinite strike.

Responding on Channels Television’s Sunrise Daily, Minister of State for Health Isaq Salako expressed optimism that ongoing government dialogue with the National Association of Resident Doctors (NARD) could avert further disruption. He acknowledged that about 40% of the 2025 residency allowances remain unpaid, and assured that discussions are underway to resolve these outstanding issues.

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Lending Rates May Drop As Inflation Eases — CBN Governor Cardoso

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The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has signalled that lending rates could decrease in the coming months, as headline inflation shows signs of slowing.

Speaking during a fireside chat at the European Business Chamber (Eurocham Nigeria) C-Level Forum, Cardoso said that while inflation remains elevated, its gradual decline opens the door for lower interest rates.

He emphasised that an environment of easing inflation and improved market efficiency would naturally support stronger corporate lending and increased investment.

Cardoso underscored the CBN’s top priority: maintaining financial system stability while addressing inflation pressures. He reiterated that the ongoing recapitalisation of banks is critical in strengthening institutions to withstand economic shocks and support growth.

He also highlighted the importance of deepening financial inclusion through technology-driven solutions and fintech, as part of broader efforts to promote equitable access to credit and tackle poverty.

In addition, he praised enhanced coordination between the central bank and fiscal authorities—including the Ministries of Finance, Trade and Industry, and the Budget Office—as key for sustaining economic reforms and long-term stability.

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JUST IN: Suspected Gunmen Abduct APC Chairman’s Wife, Daughter In Kwara

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The wife and daughter of Alhaji Mohammed Swasun, chairman of the All Progressives Congress (APC) in Patigi Local Government Area of Kwara State, have been abducted.

The incident occurred on Sunday evening when suspected gunmen stormed the community. Swasun reportedly witnessed as his wife, Hajia Fatima, and daughter, Amina, were taken away to an unknown location.

A source confirmed that the matter has been reported to the Patigi Police Division.

“The authorities are aware, but the kidnappers have not contacted the family yet,” the source said.

As of the time of filing this report, security agencies have not issued an official statement on the incident.

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