Nigeria recorded a major improvement in its public finances in the third quarter of 2025, as the Federal Government’s fiscal deficit narrowed sharply to N330 billion, signaling tighter spending controls and stronger revenue generation.
The most recent data released by the Budget Office of the Federation revealed that the deficit was far below the anticipated N3.53 trillion for the quarter, therefore representing a more than 90% decrease from prior projections. The government also did much better than the N3.17 trillion deficit seen in the same time frame in 2024.
The News Chronicle reports that the improved fiscal position comes amid ongoing reforms targeted at boosting tax collection, reducing leakages in government finances, and improving remittances from public agencies. Authorities believe the measures are beginning to ease pressure on public finances despite inflation concerns and rising debt obligations.
According to the report, Nigeria’s deficit-to-GDP ratio stood at 2.29 percent, remaining within the threshold set by the Fiscal Responsibility Act and ECOWAS guidelines. To support financing needs, the government relied on domestic borrowing, privatization proceeds, and multilateral project-tied loans.
Analysts say the latest numbers may strengthen investor confidence, although concerns remain about the country’s growing reliance on borrowing and rising debt-servicing costs.
