The federal government recorded a fiscal deficit of ₦2.66 trillion in the second quarter of 2025, according to the Budget Office of the Federation. Total revenue for the period was ₦5.97 trillion, while expenditure reached ₦8.63 trillion, with the shortfall financed through domestic borrowing.
Oil production averaged 1.68 million barrels per day, below the budget benchmark, limiting oil revenue to ₦1.50 trillion. Non-oil revenue performed better, reaching ₦8.90 trillion, driven by improved collections from taxes including CIT, VAT, and Education Tax.
Expenditure priorities included non-debt recurrent spending of ₦2.72 trillion and debt servicing of ₦4.44 trillion, exceeding projections by over 24 per cent due to domestic debt obligations. Capital releases to ministries, departments, and agencies totalled ₦393.86 billion.
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Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the economy grew by 4.23 per cent in the period, led by services and non-oil sectors. He highlighted the need for strengthened revenue mobilisation, fiscal sustainability, and prioritisation of high-impact projects to mitigate fiscal pressures and improve project delivery.
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