Pat Stevens/
The Federal Government is set to fall short of its 2025 revenue target by as much as N30 trillion, raising fresh concerns over budget implementation and fiscal sustainability, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has disclosed.
Edun made the revelation on Tuesday in Abuja while appearing before the House of Representatives Committees on Finance and National Planning during an interactive session on the 2026 to 2028 Medium Term Expenditure Framework and Fiscal Strategy Paper.
According to the minister, the Federal Government had projected total revenue of N40.8 trillion to finance the 2025 budget. However, he admitted that current revenue performance indicates that actual earnings may end the year at about N10.7 trillion, leaving a gap of roughly N30 trillion.
Edun attributed the expected shortfall to persistent structural challenges within the economy, including weak revenue mobilisation, oil production constraints, and limited tax compliance, despite ongoing reforms by the current administration.
He told lawmakers that while efforts were being intensified to improve revenue generation through tax reforms, enhanced efficiency at revenue generating agencies and the expansion of the tax net, the impact of these measures would take time to fully reflect in government earnings.
The finance minister assured the committees that the Federal Government remained committed to fiscal discipline, expenditure prioritisation and debt sustainability, stressing that borrowing would be approached cautiously to avoid worsening the country’s debt burden.
Edun also explained that the proposed 2026 to 2028 MTEF and Fiscal Strategy Paper was designed to stabilise the economy, restore investor confidence and place public finances on a more sustainable path, even in the face of revenue headwinds.
Members of the House committees expressed concern over the magnitude of the projected shortfall, warning that failure to meet revenue targets could undermine capital spending, social intervention programmes and overall economic growth.
The lawmakers urged the executive to accelerate revenue reforms and ensure greater transparency and accountability in public finance management as deliberations on the medium term fiscal framework continue.
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