Federal overnment missed its 2025 revenue target by a staggering 30 trillion naira ($18.3 billion), Finance Minister Wale Edun disclosed, attributing the deficit to sluggish oil and gas inflows and broader economic underperformance.
The shortfall left actual collections projected at just 10.7 trillion naira against an ambitious goal of 40.8 trillion naira, intended to support a 54.9 trillion naira national budget focused on economic stabilization and growth.
Edun shared the figures during a Tuesday briefing with parliamentary committees on finance and planning, as part of discussions on the upcoming 2026-2028 fiscal framework.
He highlighted weaknesses in key areas, including petroleum profit tax and corporate income from energy firms, which compounded fiscal pressures.
To cover the gap, authorities borrowed approximately 14.1 trillion naira while prioritizing essential payments like salaries, transfers to states, and debt servicing through careful financial oversight.
Edun cautioned against inflexible spending tied to volatile oil earnings, stating: “We must be ambitious, but given the experience of the past two years, spending linked to these revenues must be based on what actually comes in, not what we hope to earn.”
The revelation underscores ongoing challenges in Nigeria’s public finances, with heavy dependence on oil revenues exposing the economy to global price fluctuations and domestic production issues.
On capital spending, Edun noted that 2024 saw 5.2 trillion naira executed out of a 7.1 trillion naira allocation, achieving 73 percent, which improved to 84 percent or 11.1 trillion naira when factoring in international funding for projects.
