Nigeria is facing mounting fiscal pressure as a projected ₦30 trillion revenue shortfall threatens to push the country toward increased borrowing, economists have warned.

Recent budget performance data indicate that the Federal Government’s revenue projections for the fiscal year have fallen significantly short of expectations. While the government had projected revenues of about ₦40.8 trillion, actual inflows are now estimated at roughly ₦10.7 trillion, leaving a gap of nearly ₦30 trillion.

Economists attribute the shortfall largely to underperformance in oil and gas revenues, alongside weaker-than-expected collections from non-oil taxes. These challenges have constrained the government’s capacity to finance its budget without turning to additional borrowing.

Experts caution that the growing revenue gap could compel the government to take on more debt to meet key obligations, including payment of salaries, execution of capital projects, and servicing of existing debts. Such a move, they warn, could further strain Nigeria’s public finances and worsen debt sustainability concerns.

The development comes at a time when Nigeria is already grappling with high debt service costs and broader fiscal reforms aimed at improving budget discipline. Analysts stress that without urgent action to boost revenue generation, borrowing pressures are likely to intensify.

They emphasize the need for stronger revenue mobilization, improved tax efficiency, and reduced dependence on oil earnings to stabilize the economy and prevent deeper debt challenges in the years ahead. Visit www.jocomms.com for more news.