The Federal Government has announced a revenue performance of N12.6 trillion as of August 2024, signaling a solid fiscal year so far. This was disclosed by the Director-General of the Budget Office of the Federation, Mr. Tanimu Yakubu, during a meeting with foreign investors on the sidelines of the ongoing IMF and World Bank Annual Meetings in Washington, D.C.

Mr. Yakubu noted that the government’s pro-rata budget projection for the period was N13.1 trillion, resulting in a N500 billion shortfall. “Revenue budget by August was N13.1 trillion, and actual performance was N12.6 trillion, leaving us with a deficit of N500 billion. Aggregate revenue target was missed by 3.6 percent, so we are doing well,” Yakubu explained.

Despite the revenue shortfall, Finance Minister and Coordinating Minister of the Economy, Wale Edun, expressed optimism about the country’s fiscal trajectory. Edun highlighted that the current administration has made progress in reducing debt servicing costs, which previously consumed nearly all government revenues. “We have cut debt servicing from nearly 100 percent of revenues to about 60 percent this year, which is still high but manageable,” he said.

Edun also noted that the budget deficit has been reduced from 6.5 percent of GDP to 4.4 percent, with hopes of reaching a 4 percent target by 2024. The government is focused on increasing its revenue, aiming for a target of 23 percent of GDP, which would support sustained economic development and growth.

The administration’s efforts to reset the macroeconomy are expected to yield significant benefits as it strives to create a more robust fiscal environment in the coming years.