The Director-General of the Budget Office of the Federation (BoF), Tanimu Yakubu, announced on Monday that the federal government generated N20.7 trillion in revenue, which accounts for 61 percent of its target, and utilized N13.69 trillion for debt servicing by October 2025.
While providing an overview of the budget performance for 2025, Yakubu stated that a total of N7.09 trillion was allocated to personnel costs and pensions, with overall expenditures reaching N31.89 trillion during the reported period.
He detailed that N8.10 trillion was directed towards capital projects between January and September of 2025. Additionally, he mentioned that the extension of the 2024 capital budget execution into December 2025 saw N2.23 trillion allocated for the implementation of capital projects.
Represented by the Director of Social Expenditure, BoF, Mr. Yusuf Muhammed, Yakubu addressed the ongoing fiscal challenges while confirming that the government was fulfilling its essential obligations.
He assured that budgetary discipline would see improvements in 2026, promising adherence to the appropriated details and timelines.
Furthermore, the director-general mentioned that the federal government was looking to enhance its revenue performance through the implementation of the Nigeria Tax Administration Act (NTAA) 2025.
Yakubu highlighted that the ongoing reforms within the oil and gas sector would also contribute to strengthening the financial foundation for the 2026 budget and future expenditures.
He elaborated that the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) would be vital in aiding the government to make informed budgetary decisions, focusing on high-impact initiatives while ensuring that medium-term obligations align with available resources.
Yakubu emphasized that heads of all Government-owned Enterprises (GOEs) must meet their designated revenue targets, which will be pivotal in their performance evaluations and scorecards.
He reiterated the government's commitment to fully fund Ministries, Departments, and Agencies (MDAs) budgets this year, noting that the discipline in budget execution would be more stringent.
Moreover, he mentioned the consolidation of all previously running budgets, stressing the importance of thoroughly implementing the approved budget for the year.
Understanding the 2026-2028 MTEF and FSP is critical for translating government policy aims into feasible and results-driven budgets, according to Yakubu, who insisted that effective engagement with this framework is essential for securing funding and demonstrating value for money.
He pointed out the need for training to deepen comprehension of the 2026-2028 MTEF and FSP and the role of MDAs in achieving the government’s macro-fiscal goals while enhancing awareness of the 2026 budget context and its implications.
Yakubu criticized the approach where budgeting is perceived merely as an annual funding exercise rather than a strategic policy-driven process. He noted that the Fiscal Responsibility Act 2007 mandates the preparation of the federal government's medium-term fiscal framework.
He indicated that fulfilling Section 14(1) of the Act requires the framework to be reviewed and approved by the Federal Executive Council (FEC), whereas Section 11(2) necessitates legislative consideration and approval, allowing for necessary modifications.
Additionally, Section 12(1) limits the fiscal deficit to three percent of the estimated GDP, unless an alternative sustainable limit is determined by the National Assembly or in situations where imminent threats to national security or sovereignty arise.
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