Nigeria’s fiscal deficit rose to N13.5trn in 2024 – Budget office

Nigeria’s fiscal deficit widened significantly to N13.51 trillion in 2024, surpassing government projections and breaching the legal limit set by the Fiscal Responsibility Act (FRA) 2007, according to the latest Budget Implementation Report released by the Budget Office of the Federation.

The report showed that under the 2024 fiscal framework, the quarterly deficit was initially projected at N2.29 trillion, excluding Government-Owned Enterprises (GOEs) and multilateral or bilateral project-tied loans worth N262.98 billion.

However, actual figures far exceeded these estimates due to heightened fiscal pressures during the year.

The Budget Office reported that the fourth quarter alone recorded a deficit of N7.17 trillion, representing an increase of N4.88 trillion or 212.68% above the prorated budget projection.

“Overall, a total of N13.51 trillion deficit was recorded in 2024, representing a budget-to-GDP ratio of 3.62%, which is above the target rate of 3.0% stipulated in the FRA 2007,” the report stated.

To finance the shortfall, the government relied heavily on borrowing — comprising N1.98 trillion in multilateral and bilateral project-tied loans, N6.06 trillion in domestic borrowing, N3.37 trillion in foreign borrowing, and N3.19 trillion in budget support.

The report highlights Nigeria’s persistent fiscal imbalance driven by low revenue performance, high debt servicing obligations, and sustained public expenditure.

The International Monetary Fund (IMF) projects that Nigeria’s consolidated fiscal deficit will rise further to 4.7% of GDP in 2025, citing lower oil prices and production levels as key factors.

“In the baseline, staff projects a consolidated fiscal deficit of 4.7% of GDP in 2025. This is higher than the budget, owing to lower oil prices and production, and already reflects lower-than-budgeted capital expenditure,” the IMF stated.

By the end of the third quarter of 2024, Nigeria’s fiscal deficit had already reached N7.05 trillion, underscoring the government’s increasing dependence on borrowing to fund budgetary gaps.

Data from the Debt Management Office (DMO) shows that Nigeria’s total public debt climbed to N152.40 trillion as of June 30, 2025, up from N149.39 trillion at the end of March — a 2.01% quarterly increase. In dollar terms, the debt stock rose from $97.24 billion to $99.66 billion, reflecting a 2.49% growth.

Nigeria’s debt portfolio includes obligations to bilateral creditors such as China, France, Germany, and Japan, as well as multilateral institutions like the World Bank, Islamic Development Bank (IsDB), and African Development Bank (AfDB).

On the domestic front, the government continues to borrow through instruments such as FGN Bonds, Treasury Bills, Sukuk Bonds, Green Bonds, and Promissory Notes, underscoring the nation’s growing debt burden amid efforts to finance its ambitious spending plans.