Nigeria's Fiscal Deficit Hits N13.5 Trillion in 2024, Exceeding Government Targets

Nigeria's fiscal deficit ballooned to N13.5 trillion in 2024, surpassing the government's target and breaching the legal threshold set by the Fiscal Responsibility Act of 2007. The deficit-to-GDP ratio rose above the stipulated limit, as per the Budget Office's latest report.

The deficit was initially projected at N2.29 trillion, but actual figures far exceeded estimates due to mounting fiscal pressures throughout the year. The deficit was fueled by higher spending and reduced revenue, with the fourth quarter alone witnessing a staggering deficit of N7.17 trillion.

Nigeria's debt includes bilateral and multilateral loans from countries like China, France, Germany, and Japan, as well as institutions like the World Bank, Islamic Development Bank, and African Development Bank.