Nigeria's Government Denies Fiscal Collapse Amid Reforms

The Federal Government of Nigeria, through a statement issued by the Federal Ministry of Finance in Abuja, has clarified that the country is not experiencing a fiscal collapse, despite ongoing challenges. Dr. Ogho Okiti, the Minister of Finance, emphasized that the government is undergoing necessary fiscal corrections following years of structural distortions in public revenue and expenditure management.

Recent concerns regarding low capital releases from Ministries, Departments, and Agencies (MDAs) were addressed, with the Ministry noting that while federal revenue appears stable, significant shortfalls in oil revenue have impacted fiscal performance. For instance, the projected oil revenue for 2025 was N37.4 trillion, but actual inflows were only N7 trillion, representing a mere 19% performance rate.

The Ministry also reported that capital expenditure for 2024 is expected to reach N11.59 trillion, with ongoing projects financed through a mix of government revenue and development partner funds. Additionally, rising debt service costs were attributed to macroeconomic factors, including currency depreciation and higher domestic interest rates.