The Budget Office of the Federation has disclosed that Nigeria’s fiscal deficit rose sharply to N13.51 trillion in 2024, exceeding the government’s target and pushing the deficit-to-GDP ratio above the legal threshold set by the Fiscal Responsibility Act (FRA) 2007.
This was contained in the latest budget implementation report.
According to the report, in the 2024 Fiscal Framework, the quarterly fiscal deficit was initially projected at N2.29 trillion, excluding Government-Owned Enterprises (GOEs) and multi-lateral or bi-lateral project-tied loans amounting to N262.98 billion.
It, however, noted that actual figures far exceeded this estimate as fiscal pressures mounted during the year.
Inflows and outflows of funds during the fourth quarter were reported to have resulted in a deficit of N7.17 trillion, which was N4.88 trillion or 212.68 per cent higher than the prorated budget projection for the period.
“Overall, a total of N13.51 trillion deficit was recorded in 2024, representing a budget to GDP ratio of 3.62 per cent, which is above the target rate of 3.0 per cent as stipulated in the FRA 2007,” the Budget Office stated.
According to the report, “the deficit was financed through N1.98 trillion Multi-lateral/Bilateral Project-tied Loan, N6.06 trillion Domestic Borrowing, N3.37 trillion Foreign Borrowing and N3.19 trillion Budget Support.”
