There are further signs that the economy might suffer set-backs in 2015 with foreign exchange (forex) inflow is diminishing against increasing outflows.
The outlook for next year is mirrored in the fact that the Federal Government recorded a N46.4 billion fiscal deficit in te third quarter of 2014.
Specifically, the nation’s foreign exchange inflow through CBN had plunged by 23.7 per cent in October 2014, while outflow rose by 24.7 per cent, compared with the level in the preceding month- September 2014. Besides, the nation’s gross external reserves declined by 5.3 per cent, relative to the preceding month’s level and the average exchange rate of the naira vis-à-vis the US dollar, stood at N157.31/$ at the Retail Dutch Auction System (RDAS), same as in September. Also, the total non-oil export receipts by banks rose by 4.2 per cent above the level in the preceding month.
The fiscal operations of the federal government have resulted into an estimated deficit of N46.40 billion in the third quarter of 2014. Recent quarterly report released by the Central Bank of Nigeria (CBN) indicated that the fiscal operations reflected 0.2 per cent of the estimated Gross Domestic Product (GDP) for the third quarter of 2014, compared with N122.41 billion in the preceding quarter and proportionate quarterly budget estimate of N241.05. CBN reported that federal government’s total estimated expenditure for the third quarter of 2014 stood at N971.07 billion, indicating a decline of 25.8 per cent below the quarterly budget estimate. The data further indicated that the expenditure reflected a 1.1 per cent decline in the preceding quarter’s level.