Nigeria's FG records N4.69trn fiscal deficit in Q1'26 as revenue falls
The Federal Government of Nigeria recorded a fiscal deficit of N4.69 trillion in the first quarter of 2026, according to the Budget Office of the Federation. The deficit was driven by a decline in revenue generation, which fell short of the projected figures.
The Budget Office stated that the government's efforts to improve revenue collection and control expenditure will be crucial in addressing the fiscal deficit.
The report, which was published in Vanguard News, revealed that the oil sector witnessed a 2.57% growth, while the non-oil sector expanded by 3.94%. The country's GDP growth rate in Q1'26 was 3.89%.
Revenue falls and fiscal deficit
The Federal Government's revenue performance in Q1'26 was below the projected figures, resulting in a fiscal deficit of N4.69 trillion. The drop in revenue generation was attributed to the global economic downturn and low oil prices.
Government's commitment to transparency and accountability
The Federal Government of Nigeria remains committed to transparency and accountability in budget implementation, as stated in the Vanguard News report. The government will ensure adherence to budget implementation guidelines and governance framework for effective project management in the remaining quarters of 2026.
Improving revenue collection and controlling expenditure
To address the fiscal deficit, the government will focus on improving revenue collection and controlling expenditure, according to the Vanguard News report. The Federal Government of Nigeria is determined to achieve a more robust fiscal position.
Oil and non-oil sector performance
The oil sector witnessed a 2.57% growth in Q1'26, while the non-oil sector expanded by 3.94%. The country's GDP growth rate stood at 3.89% in Q1'26, according to the Vanguard News report.
Government's commitment to transparency and accountability
The Federal Government of Nigeria remains committed to transparency and accountability in budget implementation, as stated in the Vanguard News report. The government will ensure adherence to budget implementation guidelines and governance framework for effective project management in the remaining quarters of 2026.
<small>Source: Vanguard News — read the original story there.</small>
