Nigeria’s fiscal deficit has dropped by 29% to N2.82 trillion in the first quarter of 2024, down from N3.96 trillion in the same period last year.
This data comes from the latest quarterly statistical bulletin by the Central Bank of Nigeria.
The reduction is partly attributed to the government’s move to impose a 50% windfall tax on banks’ foreign exchange revaluation profits, aiming to raise funds for infrastructure and critical spending.
The fiscal changes were observed in the first quarter of 2024.
According to analysts, while this reduction is positive, the government’s fiscal operations are expected to remain in deficit due to rising expenditures on wages, debt servicing, and potential fuel subsidy costs.
