The federal government posted a fiscal deficit of N2.66 trillion, financed through domestic borrowing in the second quarter of the year (Q2 2025), according to Budget Office of the Federation (BoF).
Under the review period, total federal government revenue stood at N5.97 trillion, while expenditure peaked at N8.63 trillion, resulting in a deficit.
Minister of Budget and Economic Planning, Abubakar Bagudu, said despite fiscal pressures, the government prioritised capital investment, highlighted by the imperative to strengthen domestic revenue mobilisation and ensure fiscal sustainability.
Bagudu stated that the economy recorded a real GDP growth of 4.23 per cent in the review period, driven primarily by the services and non-oil sectors, while inflation remained elevated at the time, though trended downward to 22.22 per cent, and external reserves declined to $37.82 billion amid persistent revenue shortfalls in both oil receipts and non-oil revenues.
These were contained in the Second Quarter and Half-Year 2025 Budget Implementation Report (BIR) by the BoF.
