IMF Projects Sub-Saharan Africa's Fiscal Deficit at 3.2%

The International Monetary Fund (IMF) has projected that the median fiscal deficit for Sub-Saharan Africa will widen to 3.2% of GDP by 2026, reflecting a slight deterioration compared to 2025. This projection highlights the continued pressure on public finances in the region, despite some economic improvements driven by external commodity price gains.

The IMF's report indicates that while external conditions may improve, fiscal vulnerabilities remain widespread due to spending pressures and policy constraints. The report also notes that Nigeria's federal government is expected to record new borrowing figures of N11.31 trillion, which is an increase compared to earlier projections of N17.89 trillion as outlined in the 2026 abridged budget call circular issued in December 2025.

This situation underscores the ongoing challenges in revenue mobilization and fiscal management in Sub-Saharan Africa.