FG records 37.4% revenue performance in H1 2025

The Federal Government generated 37.4 per cent of its projected gross revenue in the first half of 2025, surpassing the performance recorded in the same period of 2024. This, according to the government, signals improved fiscal discipline and prudent resource management.

It has also significantly increased allocations to states and the Federal Capital Territory (FCT), raising their combined fiscal balance from ₦2.8 trillion in 2023 to ₦7.1 trillion in 2025, to support capital projects in education, health, and infrastructure.

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, disclosed this on Thursday while giving an overview of Nigeria’s economic performance at a media briefing in Abuja.

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Edun attributed the improved fiscal outlook to bold reforms under President Bola Ahmed Tinubu’s administration, including the elimination of unauthorised “ways and means” overdraft funding by the Central Bank of Nigeria (CBN).

“There have been no debits to ways and means since early in this administration,” he said. “Following GDP rebasing, Nigeria’s debt-to-GDP ratio now stands at 38.8 per cent, down from 52.1 per cent, providing greater fiscal headroom.”

The minister revealed that over ₦2 trillion was recently paid to contractors to clear outstanding capital budget obligations from 2024, with no pending liabilities outside the formal payment process. The focus, he said, is now on the timely release of funds for 2025 capital projects.

Edun emphasised that part of the government’s inclusive growth strategy is to strengthen state finances. He noted that the improved cash flow to subnational governments is enabling them to run surpluses and channel more spending into capital investments.

“From an economic classification standpoint, the increase in state spending has mainly gone to capital expenditure, which is exactly the type of growth we are aiming for,” he explained.

The minister also confirmed that repayments of past deductions from the Federation Account, owed to states, are being made regularly, further boosting their fiscal capacity.

Outlining the government’s medium-term objective, Edun said the aim is to achieve seven per cent annual GDP growth, driven by public and private sector investments, job creation, and higher incomes.

Key sectors targeted for expansion under public-private partnership (PPP) arrangements include agriculture, education, health, manufacturing, technology, and infrastructure.

Edun also stressed the importance of a coordinated fiscal and monetary policy framework to sustainably reduce inflation, lower borrowing costs, stimulate private sector investment, and improve household purchasing power.

“Our economic strategy is anchored on achieving a stable macroeconomic environment where private investment can thrive and on building stronger government savings to finance critical investments,” he said.

He reaffirmed the administration’s commitment to transparency and consistent, data-driven public communication, adding: “This dialogue is essential to building trust and keeping citizens informed about decisions made on their behalf.”

The minister further noted that Nigeria is diversifying its exports under competitive exchange rate conditions, leveraging opportunities in the African Continental Free Trade Area (AfCFTA), even as elevated interest rates in major economies continue to influence global economic trends.

NIGERIAN TRIBUNE