The Federal Government has reaffirmed its commitment to innovative financing mechanisms to address the projected N14 trillion budget deficit for the 2025 fiscal year.
Minister of Budget and National Planning, Atiku Bagudu, disclosed this on Monday during the 2025 KPMG Arise TV Budget News Day, outlining the administration’s approach to debt management and revenue mobilization.
Bagudu emphasized that the government will not rely on the Central Bank of Nigeria (CBN) beyond its legal limit of 5% of the previous year’s revenue for deficit financing. Instead, market-driven solutions such as local bond issuances and structured financial instruments will be prioritized to raise capital sustainably.
“On the deficit, we are looking at N14 trillion. Given what we have seen in the innovative approach to financing, first, because you don’t have a Central Bank of Nigeria that will be going beyond the legal bit of 5%, we are looking at market solutions. We are going to the market in different ways using innovative financing techniques,” Bagudu stated.
He assured that these strategies would boost investor confidence while ensuring responsible debt servicing.
“Innovative approaches such as local bonds have been issued, allowing the government to raise money efficiently. This represents a strong statement of intent, ensuring that those whom we have borrowed from remain confident in our ability to meet debt obligations,” he explained.
Bagudu expressed optimism that improving economic conditions in 2025 could ease the burden of debt servicing.
“If, as we anticipate, economic conditions continue to improve, we may not need to spend as much on debt servicing as previously projected,” he said.
The minister reiterated President Bola Tinubu’s administration’s commitment to fiscal responsibility, focusing on revenue generation through tax reforms, public-private partnerships (PPPs), and investments in productive sectors.
