FG To Adopt Innovative Financial Strategies To Bridge N14 Trillion 2025 Budget Deficit -Bagudu

The Federal Government has reaffirmed its commitment to leveraging innovative financing mechanisms to address the projected N14 trillion budget deficit for the 2025 fiscal year.

This was made known on Monday by the Minister of Budget and National Planning, Atiku Bagudu.

Speaking on 2025 KPMG Arise TV Budget News Day on Arise TV, Bagudu highlighted the administration’s strategy for debt management and revenue mobilization, ensuring that the country maintains fiscal stability while avoiding excessive reliance on the Central Bank of Nigeria (CBN) for deficit financing.

Bagudu emphasized that under no circumstances would the CBN provide financing beyond its legal limit of 5% of the previous year’s revenue, in line with the legal requirements of the Central Bank of Nigeria. Instead, the government will prioritize market-driven approaches to raise funds.

“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,” he stated.

To bridge the funding gap, the government is exploring local bond issuances and other structured financial instruments that will allow it to raise capital from investors while ensuring sustainability in debt servicing.