The warning is contained in a fiscal assessment released by the office and signed by the Director General, Tanimu Yakubu, who noted that the nation’s “debt service-to-revenue ratio remains elevated” while “fiscal space is constrained, requiring urgent revenue mobilisation and expenditure rationalization.”
Nigeria’s fiscal stability is under increasing pressure as the Budget Office of the Federation warned that the country is spending a significant portion of its revenue on servicing debt, leaving limited room for critical development spending and economic expansion.
The warning is contained in a fiscal assessment released by the office and signed by the Director General, Tanimu Yakubu, who noted that the nation’s “debt service-to-revenue ratio remains elevated” while “fiscal space is constrained, requiring urgent revenue mobilisation and expenditure rationalization.”
According to the Budget Office in its assessment published earlier this month in the third quarter 2025 budget performance document, the persistent volatility in oil revenue continues to weaken government finances, with production challenges and falling international crude prices affecting expected earnings.
The report stated that “oil revenue volatility continues to expose fiscal outcomes to production and pricing shocks; structural underperformance persists amid lower market prices.”
