Nigeria's Fiscal Deficit to Hit ₦13.5tn in 2024 Due to Rising Borrowing

Nigeria's fiscal deficit is set to widen sharply to ₦13.5tn in 2024, driven by increased borrowing, according to the Data Budget Office. The surge in recurrent spending and debt servicing obligations has deepened the gap between government revenue and expenditure.

Factors contributing to the deficit include high recurrent wage bills, underperforming non-oil revenue collection, and a narrow tax base. Analysts recommend revenue and expenditure reforms to restore fiscal balance and reduce reliance on borrowing to fund capital growth projects.