Nigeria may face 2025 budget financing gap

Significance The plan includes an NGN47.9tn (USD30.4bn) budget for 2025, roughly one-third higher in nominal terms than the 2024 budget. Although the expenditure details of the budget have not yet been finalised, the MTEF provides a picture of the government’s economic planning for 2025. Impacts Dangote refinery operations, alongside the opening of the fuel import market, will reduce the likelihood of recurring fuel shortages. Natural gas suppliers to highly indebted power generation companies may cut off supplies, leading to more frequent electricity blackouts. Central Bank failures to supply adequate numbers of banknotes to the banking sector may lead to cash shortages in the coming weeks.