The Federal Government recorded a budget deficit of N12.95 trillion in 2024, surpassing its projected N9.16 trillion deficit by 41%, according to data from the Central Bank of Nigeria (CBN).
The deficit also rose by 0.77% compared to the N12.85 trillion recorded in 2023. Government spending increased to N21.5 trillion, a 12% rise from N19.19 trillion in 2023, but fell 25.2% short of the N28.76 trillion allocated for 2024.
Revenue grew by 34.8% year-on-year, reaching N8.55 trillion in 2024, up from N6.34 trillion in 2023. However, it remained 56% below the N19.56 trillion revenue target for the year.
In its Q4 2024 report, the CBN attributed the increase in government spending to higher personnel costs and interest payments. Total expenditure for the quarter stood at N5.6 trillion, a 2.22% increase from the previous quarter but 22.09% below the quarterly target of N7.19 trillion. Recurrent spending accounted for 75.13% of total expenses, while capital and transfer payments made up 17.1% and 7.77%, respectively.
Despite rising expenditure, government revenue also improved, driven by higher receipts from the federation account and independent revenue sources. Retained revenue for the federal government reached N2.52 trillion, a 10.4% increase from Q3 2024 but still 48.57% below target.
The overall budget deficit narrowed by 3.61% to N3.08 trillion in Q4 2024, reflecting a better revenue-to-expenditure balance compared to previous quarters.