Nigeria’s fiscal deficit has reached N7.05 trillion as of Q3 2024, according to President Bola Ahmed Tinubu’s presentation of the 2025 Budget of Restoration to the National Assembly. This deficit arises from the gap between the country’s total revenue and expenditure for the year so far, highlighting the government’s reliance on borrowing to bridge funding shortfalls amid ambitious spending plans.
Key Highlights:
- Revenue Generation: Nigeria generated N14.55 trillion in revenue as of Q3 2024, representing 75% of the annual target
- Government Expenditure: Government expenditure for the same period stood at N21.60 trillion, accounting for 85% of the budgeted spend.
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- Fiscal Deficit: The fiscal deficit of N7.05 trillion raises concerns about adherence to the Fiscal Responsibility Act (FRA) of 2007, which caps the fiscal deficit at 3% of GDP.
- Macroeconomic Indicators: Despite the deficit, Nigeria’s macroeconomic indicators have shown gradual recovery in 2024, with GDP growth of 3.46% in Q3 2024, foreign reserves of $42 billion, and a trade surplus of N5.8 trillion.
Source: Nairametrics
