The Federal Government of Nigeria recorded an aggregate fiscal deficit of N4.69 trillion for the first quarter of 2026, as total revenue generation fell significantly below target, underscoring severe headwinds in financing the national budget. ​
The figures were disclosed in the 2026 First Quarter Budget Implementation Report presented by the Director-General of the Budget Office of the Federation, Tanimu Yakubu, during an executive briefing at the Ministry of Finance headquarters in Abuja.
While the N4.69 trillion deficit came in below the prorated quarterly projection of N7.86 trillion, officials noted that the lower shortfall was driven by significant spending delays rather than fiscal strength.
​During the first three months of the year, the Federal Government generated N5.08 trillion in aggregate revenue against a quarterly target of N9.22 trillion, resulting in a N4.14 trillion shortfall.
Aggregate expenditure reached N9.76 trillion, falling 57.2 percent short of the projected N17.08 trillion quarterly benchmark. ​Debt servicing obligations continued to place a heavy burden on public finances. The government spent N4.63 trillion on debt service during Q1 2026, exceeding its prorated quarterly target of N3.88 trillion by 19.27 percent and consuming roughly 91 percent of total actual revenues collected during the period.
On the financing side, domestic borrowing yielded N3.90 trillion toward the N4.61 trillion quarterly target, while foreign borrowing recorded zero actual inflows against a projected N2.70 trillion. ​Capital project implementation experienced significant delays, with zero funds released for the 2026 capital budgets of Ministries, Departments, and Agencies (MDAs) as of March 31, 2026.
Ministry officials attributed this lag to the extension of the 2025 capital release utilisation period through the end of the year, which allowed ongoing projects to continue but deferred fresh capital disbursements. ​
Addressing reporters following the presentation, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized that fiscal interventions in subsequent quarters will focus on tightening revenue collection, curbing crude oil theft, and accelerating project execution to stabilize the 2026 budget rollout.
