President Bola Ahmed Tinubu, during the presentation of the 2025 Budget of Restoration, revealed that Nigeria recorded a N7.05 trillion fiscal deficit by the third quarter of 2024.
This deficit takes origin from the N14.55 trillion revenue generated (75% of target) and N21.60 trillion expenditure (85% of budget), reflecting the government’s reliance on borrowing to fund spending.
Budget Overview
2024 Budget: N35 trillion, with a projected deficit of N9.2 trillion.
2025 Proposal: N47.90 trillion budget, N34.8 trillion revenue, N13.1 trillion deficit.
Economic Recovery Highlights
GDP Growth: 3.46% in Q3 2024, up from 2.54% in Q3 2023.
Foreign Reserves: $42 billion.
Trade Surplus: N5.8 trillion.
Challenges & Solutions
As increased wages, pensions, and debt costs were the key contributors to the rising deficit, the government plans to improve tax collection, enhance fiscal discipline, and explore alternative financing to reduce debt and achieve fiscal sustainability.
President Tinubu emphasized the focus on infrastructure, security, and human capital development to stimulate growth and tackle economic pressures.
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