Nigeria’s Q2 2025 fiscal deficit hits ₦2.66trn
Nigeria experienced a fiscal deficit of ₦2.66 trillion in the second quarter of 2025, remaining compliant with the ECOWAS convergence cap of three percent of Gross Domestic Product, as reported by the Budget Office of the Federation.
This information is detailed in the 2025 Second Quarter Budget Implementation Report issued by the Budget Office, which noted that although revenue collection fell short of budget expectations, it marked an improvement compared to the same timeframe in 2024.
The report noted that gross oil revenue for the quarter was ₦4.77 trillion, considerably below the quarterly target of ₦12.76 trillion.
It also indicated that non-oil revenue totaled ₦4.46 trillion, which slightly surpassed the estimated figure for the period.
According to the report, the total net distributable revenue available to the three levels of government, after deductions, was ₦9.85 trillion, signifying a shortfall of ₦7.01 trillion from the projections.
The Budget Implementation Report revealed that total government spending in the second quarter of 2025 reached ₦8.63 trillion, a figure that was 37.19 percent lower than the approved quarterly budget but somewhat greater than the expenditure recorded in the second quarter of 2024.
“The revenue and expenditure outcomes of the Federal Government resulted in a fiscal deficit of ₦2.66 trillion in the second quarter of 2025, which was ₦865.14 billion (24.52 percent) under the anticipated quarterly fiscal deficit of ₦3.53 trillion. This translates to a deficit to GDP ratio of 2.64 percent for the period in question, which is within the 3 percent limit for the country and also the ECOWAS convergence standards. The fiscal deficit
The nation’s economy experienced a growth of 4.23 percent in the second quarter of 2025, indicating an improvement in economic performance and a trend toward gradual stability. According to the Budget Office, this positive trajectory is expected to persist in the following quarters of 2025.
Senator Abubakar Atiku Bagudu, the Minister of Budget and Economic Planning, remarked that the report reflects the Federal Government’s dedication to transparency, accountability, and effective public financial management.
He emphasized that, despite ongoing fiscal pressures, the government has prioritized capital investment and increased its efforts to boost domestic revenue generation to ensure long-term fiscal sustainability.
In addition, Tanimu Yakubu, the Director General of the Budget Office of the Federation, commented that the fiscal outlook continues to be influenced by global economic dynamics.
He pointed out that fluctuations in commodity prices, climate-related issues, and monetary tightening in developed economies will challenge Nigeria’s fiscal resilience.
Yakubu, however, guaranteed that the Budget Office will continue its mission of rigorous budget oversight, improved inter-agency data integration, and transparent public financial disclosures.
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