Despite an increase in revenue generation since the beginning of the year, the Federal Government’s overall performance still falls below set target by about N2.19 trillion by the end of April.
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, disclosed this in Abuja on Monday, just as the Ministry of Finance Incorporated (MOFI) disclosed that its affilaite, MOFI Real Estate Investment Fund (MREIF) has so far given about 159 mortgages valued at about N6.9 billion to Nigerians within two months of its operation since last month.
The mortgages are in the pilot phase of the initiative aimed at bridging the 28 million housing deficit in the country. The current phase is targeting Kano, Abuja, Lagos, Rivers, Abia, and surrounding states of the federation.
Budget projecton
On February 13, 2025, the National Assembly passed a N54.99 trillion appropriation in Nigeria’s 2025 budget after revising the initial proposal of N49.74 trillion submitted by the executive for approval.
Revenue was projected at about N36.35 trillion, while expenditure was estimated at about N49.74 trillion, resulting in a fiscal deficit of about N13.39 trillion.
Based on approved benchmarks of $77.79 per barrel of oil; oil production average of 1.78 million barrels per day, and average exchange rate of N1,500 to the dollar, the government expected to realise its revenue projection target through proceeds from crude oil sales, gas exports, royalties, and Petroleum Profit Tax (PPT), Value Added Tax (VAT), Company Income Tax (CIT), customs duties, and other levies.
To meet its revenue target, the government was expected to generate an average of N9.09trillion every quarter throughout the year.
Revenue Shortfall
However, speaking on Monday during the 2nd Quarter 2025 Citizens and Stakeholders’ Engagement Session in Abuja, the Minister disclosed that the government was able to realise only about N6.9trillion, about N2.19 trillion below its projected target.
“By end of April, we realised just under N7 trillion (about N6.9 trillion) as revenue, up from just over N5trillion (about N5.2 trillion) at the same period last year. It’s basically a 40% increase in revenue,” he said.
Apart from adjustments in the official exchange rate and other fiscal interventions, the Minister said the government was committed to polices to block loopholes and leakages in the system, while applying automation and technology to the collection of revenues to boost revenue generation capacity.
Besides, he said the government was determined to ensure compliance by its Ministries, departments and agencies with the provisions of the Fiscal Responsibility Act and the 2020 Finance Act on the transfer of 80% of the public revenue into the federal coffers.
Despite all the efforts, he said until the Auditor General of the Federation audits the accounts of the agencies to determine how much was due to the government by revenue earning entities under the law, the deficit in revenue would continue.
In an environment of rising revenue, the Minister said all other things being equal, the country’s debt service exposure has dropped from 150 percent of revenue recorded in the first quarter of 2023, when the present administration took over, to about 60 percent by the end of 2024.
“We are paying more in debt service than in revenue that was earned. We have to stick to the regulations that limit how much overdraft, or Ways and Means exposure the government can have. And as it is now, there’s no resorting to Ways and Means,” he said.
As a result of the application of technology in government’s revenue mobilisation efforts, he said revenue increase from $12.5 trillion (above 12 percent) in 2024, to $20 trillion, in the first quarter of this year.
On the achievement of the government through the activities of some of its agencies aimed at impacting the quality life of the people, the Ministry of Finance Incorporated (MOFI) highlighted the progress recorded through some of its programmes.
MOFI’s achievements
The Managing Director/Chief Executive of MOFI, Dr Amstrong Takang, since the opening of the National Asset Register to collate all the assets belonging to the Federal Government, the exercise has revealed that only about 20 of those assets have been valued at about N38trillion.
Dr Takang, who was represented by an Executive Director of MOFI, Tajudeen Ahmed, said MOFI was confident it was on course to meeting its target of valuating about N100 trillion of government assets in the next ten years, with a projection for the register to meet about N70 trillion asset valuation target next year.
Under the MOFI Real Estate Investment Fund (MREIF) established by the government to bridge the country’s housing gap, Mr Sani Yakubu, disclosed that over the last 18 months since MOFI commenced work, significant efforts have been made to redress the crisis in the sector.
Despite challenges on both the demand and supply sides, Mr Yakubu said the agency’s analysis of the situation revealed that the country would need to be producing about 700,000 houses averagely, annually to bridge the gap.
To meet this target, he said access to finance must be guaranteed by providing low disposable incomes, while removing weak regulatory oversight, and creating the environment for low-cost housing for the people.
In a country with a population of over 220 million people, with about 28 million housing deficit, he said the current production figures of about 100,000 houses annually, as against an average 700,000 houses per annum was a far cry from the target.
Consequently, he said it was take about N60 trillion to resolve the crisis, pointing out that apart from having an idea of the size of the problem, the country should appreciate the need to mobilise every resource to tackle it.
“First of all, we need to find for our people the ability to afford the houses. We need to build an ability for Nigerians to see what is available for them to buy. In designing the MREIF, we considered the ability to afford on the supply side, the ability of companies in real estate sector to be able to supply the market, to meet with the yearnings of Nigerians,” he explained.
Within two months MREIF has been in operation since May, he said about 159 mortgages value at about N6.9 billion have been given to Nigerians in just the pilot phase, targeting Kano, Abuja, Lagos, Rivers, Abia, and surrounding states.
