N54.9TN BUDGET: ANALYSTS WARN OF RISING DEFICIT

The Federal Government’s approved budget for 2025, totalling N54.99 tn, has raised concerns among analysts over a widening fiscal deficit and insufficient capital expenditure, according to analysts
Federal Government Approved Budget Analysis’, the budget, which is the largest Nigeria has ever seen in naira terms, allocates N23.96tn to capital expenditure, N13.06tn to recurrent non-debt expenditure, and N14.32tn to debt servicing and sinking funds. However, with a projected revenue of only N36.35tn, the budget is set to run a fiscal deficit of N18.64 tn.
Analysts noted that while priority sectors such as security, education, health, and infrastructure receive significant allocations, “the Federal Government aims to spend less than 12 per cent of its budget on health and education combined,” a move that some experts say is insufficient for the country’s development needs.
The report highlights concern about the budget credibility, noting “the perennial issues of low budget credibility and relatively high implementation of recurrent expenditure compared to low implementation of capital expenditure