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Gifted Analysts

Research and Analytics

FGN

Fiscal Stability – A Need for States to Look Inward

By Popoola AkintayoPosted on Posted in EconomyTagged , , , , , 7 Comments on Fiscal Stability – A Need for States to Look Inward

The existing revenue-sharing structure of the government stifles innovation and prevents the state from looking inward to improve revenue since the Federal Allocation remains intact. The major source of revenue for most States is the funding from FAAC, with many contributing little to the pool. Oil revenues which make up more than 42% of government income are generated from activities in oil-producing states, mainly in the South-South region, a fraction of the nation.

A Beginner’s Guide to CBN’s Ways and Means to the Federal Government of Nigeria

By Abdulazeez KurangaPosted on Posted in EconomyTagged , , , , , , , 2 Comments on A Beginner’s Guide to CBN’s Ways and Means to the Federal Government of Nigeria

CBN’s financing of the FGN deficits seems to be a structural one and not a one-off event. This is because historical data has shown that the CBN has been financing a huge part of the FGN deficits even when there was no economic downturn. For example, out of the total fiscal deficit of N3.64 trillion in 2018, the CBN financed 52.2%. In 2019, the total fiscal deficit was N4.23 trillion and the CBN financed 78.3% or N3.31 trillion of that amount. There was no downturn during those periods, hence it goes against economic theory for the CBN to be printing money to finance significant proportions of the FGN’s fiscal deficit.

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