Nigeria's Fiscal Deficit Narrows to N330 Billion in Q3 2025

In the third quarter of 2025, Nigeria's fiscal deficit decreased to N330 billion, a significant improvement from the projected quarterly deficit of N3.53 trillion. This reduction represents a decline of N3.20 trillion, or 90.68%, compared to the same period in 2024.

The Budget Office of the Federal Government attributed this positive shift to enhanced fiscal management and improved revenue mobilization efforts during the quarter. The government intensified its efforts to improve tax administration and increase remittances from government-owned enterprises.

Despite facing persistent fiscal deficits over several years due to weak oil revenues and rising recurrent expenditures, the latest fiscal data indicates a notable improvement in Nigeria's public finance position. The Federal Government's capital expenditure for the quarter was reported at N3.10 trillion, which included N7.08 trillion in domestic borrowing and N4.81 trillion in multilateral and bilateral project loans.