The World Bank has raised concerns over Nigeria’s 2025 federal budget, describing it as overly ambitious and warning that unmet revenue targets could force the government to resort to Central Bank financing through the Ways and Means facility.
During the launch of its Nigeria Development Update report in Abuja, the Bank’s Lead Economist, Alex Sienaert, said the budget’s assumptions, including crude oil production of 2.1 million barrels per day and a benchmark price of $75 were overly optimistic given current realities.
He cautioned that if revenue falls short, the government might face pressure to borrow beyond projections, potentially undermining macroeconomic stability and damaging confidence in fiscal policy and the naira.
Sienaert also called for deeper fiscal reforms, urging the elimination of electricity subsidies and increased investment in health and education.
He noted that while the removal of fuel subsidies and other reforms had improved the fiscal outlook, much work remains.
In response, Minister of Budget and Economic Planning, Senator Abubakar Bagudu, disagreed with the World Bank’s position, asserting that the budget figures were modest and aligned with Nigeria’s potential.
He argued that oil production targets were achievable and described the budget as aspirational, aimed at unlocking inclusive growth through improved fiscal performance and grassroots economic planning.