Nigeria currently running on N7 trillion fiscal deficit as of Q3 2024

The deficit arises from the gap between the country’s total revenue and expenditure for the year so far, highlighting the government’s continued reliance on borrowing to bridge funding shortfalls amid ambitious spending plans.

The President also presented a budget of N47.9 trillion in 2024 backed by a revenue of N34.8 trillion suggesting a fiscal deficit of N13.1 trillion, a national record.

The budget figures are based on the Medium Term Expenditure Framework already presented in November by the finance minister.

President Tinubu revealed that N14.55 trillion in revenue had been generated as of Q3 2024, representing 75% of the annual target, while government expenditure for the same period stood at N21.60 trillion, accounting for 85% of the budgeted spend.

This discrepancy leaves a fiscal gap of approximately N7 trillion, further emphasizing Nigeria’s challenge in achieving a balanced budget amid persistent economic pressures.

The federal government planned for a budget of N35 trillion which is backed by a revenue of N25.8 trillion indicative of a budget deficit of N9.2 trillion. 

Economic Context: The President acknowledged the efforts made in driving Nigeria’s recovery and economic growth following challenges in the global and domestic economic environment.

However, the revenue shortfall highlights the need for:

The Tinubu administration remains focused on stimulating the economy through public investments.

The President noted that increased government spending in infrastructure, security, and human capital development was essential to fostering growth and recovery.

“While challenges persist, we improved revenue collection and fulfilled key obligations. The transformational effects of this on our economy are gradually being felt,” Tinubu stated.

The Bigger Picture: Despite the deficit, Nigeria’s macroeconomic indicators have shown gradual recovery in 2024:

With the 2025 budget set at N47.90 trillion, President Tinubu emphasized the administration’s commitment to achieving macroeconomic stability, reducing inflation, and fostering inclusive growth.

Meanwhile, according to the MTEF, the budget deficit is projected to be N13.08 trillion in 2025, from N9.18 trillion estimated for 2024.