The Federal Government has recorded a significant revenue shortfall in the 2025 fiscal year.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known while appearing before the House of Representatives Committees on Finance and National Planning.
The Minister was before the committee to interact with the lawmakers on the 2026–2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Mr Wales Edu explained that Federal Government initially a revenue of ₦40.8 trillion for 2025 to fund the ₦54.9 trillion budget estimate but current performance indicates that total revenue for the year is likely to end at about ₦10.7 trillion.
He attributed the shortfall to weak oil and gas revenues, particularly Petroleum Profit Tax (PPT) and Company Income Tax (CIT) from oil and gas companies, as well as underperforming subheads.
The Minister added that even though the federal government had also borrowed about ₦14.1 trillion, the combined inflows remained far below what was required to fully fund the 2025 budget.
In his remark, Minister of Budget and National Planning, Atiku Bagudu, said the MTEF and FSP were developed through extensive consultations with government agencies, the private sector, civil society and development partners.
Atiku Bagudu, explained that for the 2026 budget, the government retained a target oil production of 2.06 million barrels per day but adopted a more cautious production assumption of 1.84 million barrels per day for revenue calculations.
Earlier, the Chairman House Committee on Finance Mr James Faleke, said the country’s economy should be critically analysed to guide against bloated budget and elp take the proper decisions to move the country forward.
COV /TSIBIRI
