The federal government of Nigeria has approved a budget of N17.13 Trillion (N17,126,873,917,692) for the 2022 fiscal year. While the federal government plans to spend this amount as total expenditure, it hopes to generate revenue to the tune of N10.74 Trillion (N10,740,803,831,543).
Therefore, the 2022 approved budget has a budget deficit of N6.39 trillion (6,386,070,086,149). This figure is the highest deficit figure in the last seven years. The budget deficit is 37.3 percent of the total approved budget. In simple terms, the Federal Government may need to borrow N37 for every N100 it plans to spend in 2022.
Though most of the deficit will be borrowed, (at least 98%) the remaining will be sourced from sales of government properties/assets and privatization.
However, in proportion to the total budget, the percentage deficit for 2022 dropped in comparison to 2021 and 2020. Data analysis shows that the budget deficit in 2022 is 37.3% of the total N17. 13 trillion approved. This is less than the 43.9% for the 2021 budget (supplementary inclusive) and 42.7% in 2020.
In the seven years under review, 2021 recorded the highest proportion of budget deficit to the total budget with the least being in 2018. The deficit to budget ratio dropped from 2016 all through to 2018, then picked up between 2019 and 2021 before declining in 2022.