Abuja, July 3, 2025 – The International Monetary Fund (IMF) has advised Nigeria to review its 2025 budget targets or face a deepening financial crisis.
The global body gave the advice in its latest report Article IV Consultation on Nigeria released on Wednesday
It said the country had exceeded its budget deficit projections for the year due to falling oil prices, lower oil production levels, and challenges in the execution of capital expenditure.
It, therefore, advised the country to cut the budgetary projections to reflect the current economic realities.
The IMF also warned that given the current realities, Nigeria’s fiscal deficit could reach 4.7 per cent of its Gross Domestic Product in 2025, far higher than the budgeted target.
It said the 2025 budget, which was originally based on optimistic projections for hydrocarbon revenues, now faces considerable challenges due to the global downturn in oil prices and the ongoing uncertainty in the oil sector.
“The 2025 budget was based on optimistic hydrocarbon revenue projections, even before the price decline since April,’ it said
The global body also expressed concerns over the implementation of capital expenditure, a crucial component of the 2025 budget, adding that budgeted capital expenditure is likely to exceed implementation capacity given execution in previous years
The report strongly recommended that Nigeria should take immediate actions to adjust its fiscal policies and revise the 2025 budget, although it said the authorities had announced that they would adjust the budget to lower oil prices, while pushing for higher hydrocarbon production and continuing with administrative efforts to boost revenue..
