Nigerian Government Records ₦2.66 Trillion Deficit in Q2 2025 Due to High Debt Servicing Costs

The Nigerian Federal Government posted a fiscal deficit of ₦2.66 trillion in the second quarter of 2025, with debt servicing amounting to ₦4.44 trillion. Revenue stood at ₦5.97 trillion, while expenditure rose to ₦8.63 trillion, leading to the deficit.

Weak revenue performance, particularly in the oil sector, and high non-discretionary obligations like debt servicing and personnel costs were highlighted. Oil revenue fell short of targets, while non-oil revenue exceeded expectations due to improved tax collection.

The government's expenditure included capital releases and non-debt recurrent spending, with debt servicing exceeding projections by 24.10%.