More money in circulation but FG entered new year with deficit – CBN report

Date:

Share post:

The report published by the Central Bank of Nigeria (CBN) on Monday revealed that, as at the last check, N2.2 trillion were outside banks. Compared to the previous quarter, this shows a 9.9% increase in the total money in circulation. However, due to unmet revenue expectation, the Federal Government recorded deficit in its earnings and expenditure coming into 2020.

The value of money in circulation may have been due to seasonal factors though as consumers withdrew more cash for upkeep and festive spending during the last holiday. The more money in circulation the better for businesses, especially those in the food, hospitality, entertainment, travels,retail and fashion sectors.

Meanwhile deposits at the Central Bank also witnessed a 3.6% increase buoyed by positive actions by the Federal Government and commercial banks. In sum, the shares of deposit from the Federal Government, the commercial banks, and private sectors at the apex bank were 47.4%, 35.9%, and 16.7% respectively.

However, Federal revenue collected over that period fell short of expectation. That was, in part, due to shortfalls in oil and non-oil revenue components. In the end, retained revenue for the FG stood at N938.72 billion while expenditure amount to N2.07 trillion. The government was left a deficit of N1.13 trillion entering the new year.

Toyin Afilaka
Toyin Afilaka
Toyin Afilaka writes with simplicity and insight. He aims to enrich the Nigerian small business landscape. Through Hustle24 he connects entrepreneurs with information about new policies, enterprise solutions and opportunities that will aid their 'hustle'. He has written extensively for CobraReview, a product review portal, and served as a lead project manager for MarketingMix where he consulted as PR consultant for MTN Project Fame and Business Next Titan etc.

12 COMMENTS

  1. Simply wish to say your article is as astounding.
    The clearneess in your post is simply excellent and i could assume you’re an expert on this
    subject. Well with your permission let me to grab your feed to keep up to date with forthcoming
    post. Thanks a million and please carry on the enjoyable work.

  2. I’ve been exploring for a little bit for any high-quality
    articles or weblog posts in this kind of house .
    Exploring in Yahoo I eventually stumbled upon this site. Reading this
    information So i’m satisfied to convey that I have
    a very excellent uncanny feeling I found out just what I needed.

    I such a lot certainly will make sure to don?t forget this
    web site and give it a glance regularly.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!
spot_img

Related articles

Three (3) smart keys for surviving in business

If you are in business a lot is riding on your back. Certainly, you can’t afford to slump....

15 Dying Careers to Avoid

These once-thriving careers are now on the brink of irrelevance in today's fast-paced world. While some jobs show signs...

Outspan promotes sustainable dairy farming practices to mark World Milk Day

Kano, June 2, 2023To commemorate this year’s World Milk Day (WMD), Outspan Nigeria Limited, a subsidiary of olam...

Meet Anirudh A Damani: Gearing Up to Invest In 100 African

ByNayantara Jha | May 23, 2023Young, well-travelled and with a keen eye for numbers, Anirudh A Damani, Director...