2025 Budget: FG Generated N20.7tn, Applied N13.69tn to Debt Service, N8.10tn Capital Projects, N31.89tn Expenditure as at October

• FG banks on new tax laws, oil, gas sector reforms to boost 2026 performance

• Mandates heads of government-owned enterprises to meet targets

• Tanimu Yakubu: Effective MDA engagement key to securing funding, improved budget execution, value-for-money, others, says previous multiple running budgets consolidated

James Emejo in Abuja

Director-General, Budget Office of the Federation (BoF), Tanimu Yakubu, yesterday, disclosed that the federal government generated N20.7 trillion in revenue, representing 61 per cent of its target, and applied N13.69 trillion to debt service as of October 2025.

Giving an update on the 2025 budget performance, Yakubu said N7.09 trillion was spent on personnel and pensions, while N31.89 trillion covered expenditure in the review period.

He stated that N8.10 trillion was spent on capital projects between January and September 2025, adding that following the extension of 2024 capital budget execution to December 2025, a total of N2.23 trillion was released for 2024 capital projects implementation as at June 2025.

Represented by Director, Social Expenditure, BoF, Mr. Yusuf Muhammed, Yakubu, stated that while fiscal challenges persisted, the government met its key obligations.

He said budget execution discipline will be greater in 2026, adding that it will be implemented strictly in line with the appropriated details and timelines.

The director-general budget also said the federal government sought to improve revenue performance through the Nigeria Tax Administration Act, (NTAA) 2025.

He said ongoing oil and gas sector reforms will also help to shore up funding for the 2026 budget and future spending plan.

He said amid the tight fiscal space and attendant risks, the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) will help to make informed trade-offs, prioritising high-impact programmes, and ensuring that medium-term commitments remain consistent with available resources.

Yakubu said Heads of all Government-owned Enterprises (GOEs) were required to meet assigned revenue targets, which will form core components of their performance evaluations and institutional scorecards.

He further reaffirmed the federal government’s commitment to full funding of MDA budgets in this year, stating that budget execution discipline will be stronger.

Yakubu also affirmed the consolidation of all previous multiple running budgets, adding that the appropriated budget for the year must be implemented thoroughly and better.

Yakubu stressed that understanding the 2026-2028 MTFF and FSP remained essential for translating government policy objectives into budgets that were credible, affordable, and results-oriented.

He stated that effective MDA engagement with the framework was not optional but central to securing funding, improving budget execution, and demonstrating value-for-money.

He said the training sought to deepen understanding of the 2026-2028 MTEF and FSP and the role of MDAs in achieving macro-fiscal objectives of the government, as well as enhance understanding of the context of the 2026 budget among others.

According to him, failure to link policy, planning, and budgeting is a major factor contributing to poor budgeting outcomes, particularly failure to direct resources to policy priorities of the government.

Yakubu decried the situation where, “Budgeting is treated as an annual funding exercise, not a policy-based exercise”.

He pointed out that preparation of the FGN medium-term fiscal framework was a mandatory requirement by Section 11 (1) of the Fiscal Responsibility Act 2007.

He said Section 14(1) of the FRA 2007 requires the framework to be reviewed and approved by the Federal Executive Council (FEC), while Section 11(2) requires the framework to be considered and approved by resolution of each chamber of the National Assembly, with any modifications deemed necessary.

Section 12(1) caps the deficit at three per cent of estimated GDP, unless the National Assembly sets a higher sustainable limit or in the president’s judgment, there is imminent threat to Nigeria’s national security or sovereignty.