IMF Warns Nigeria of Growing Fiscal Crisis as Oil Revenue Falls Short of 2025 Budget Targets
By Okafor Joseph Afam | Springnewsng | July 3, 2025
The International Monetary Fund (IMF) has raised fresh concerns over Nigeria’s fiscal stability, warning that the nation’s 2025 budget faces serious risks due to declining oil revenue.
In its latest assessment, the IMF said Nigeria’s N54.99 trillion spending plan is based on overly optimistic oil price projections and production targets, which may not hold due to global market volatility and persistent local challenges in the oil sector.
The IMF urged the federal government to consider revising the 2025 budget downward and adopt more realistic revenue assumptions to avoid deeper fiscal imbalances. It emphasized the importance of diversifying Nigeria’s revenue base beyond oil, boosting non-oil taxes, and improving public financial management.
According to the IMF, “Nigeria remains vulnerable to external shocks, and a fiscal recalibration is urgently needed to safeguard macroeconomic stability.”
The warning comes amid mounting debt servicing costs, exchange rate pressures, and inflationary trends that continue to squeeze government finances and household incomes.
Economists have echoed the IMF’s concerns, stressing that proactive adjustments are necessary to prevent a budgetary shortfall that could derail economic growth.
