Nigeria May Slip Into Recession as Budget Deficit Hits N30.58trn In Seven Years - Newstrends
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Nigeria May Slip Into Recession as Budget Deficit Hits N30.58trn In Seven Years

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4 years ago

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The budget deficit has risen to at least N30.58tn in the last seven years.
This is according to data from budget implementation reports for the third and fourth quarters of 2015; the four quarters of 2016, 2017, 2018, 2019, 2020; the first three quarters of 2021; and the first four months of 2022.
According to Investopedia, a budget deficit occurs when expenses exceed revenue.
An analysis of the reports on the Budget Office of Nigeria’s website revealed that Buhari’s administration had spent at least N54.98tn on budget implementation since its inception but has only financed this spending with N24.39tn, leaving a deficit of N30.58tn.
A breakdown of some of the expenses revealed that the present administration had spent at least N23.66tn on personnel costs, pensions, overhead costs, presidential amnesty programme, other service-wide votes, and special interventions.
A minimum of N14.13tn has been spent servicing domestic and foreign debts, and at least N10.47tn has been spent on capital expenditure.
According to the reports, this deficit financing has been largely financed by government borrowing. The budget implementation report for Q4, 2015 said, “The FGN has arranged to raise short-term credit from the CBN through the mechanism of Ways and Means subject to a ceiling of 12.5 percent of FGN’s revenue.
“This amount will be retired and therefore not considered as new borrowing outside the borrowing approved to finance the budget deficit. However, due to current fiscal challenges, the CBN had agreed to increase the Ways and Means advances threshold hence the FGN’s ability to raise N615.96bn from this source.”
Since allowance for raising the ceiling was made, total borrowing from the CBN has hit N19.01tn in April 2022 from N648.26bn as of June 2015.

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Also, the nation’s total debt profile hit N41.06tn as of March 2022 from N12.12tn, according to the Debt Management Office.
A document titled ‘Public Consultation on the Draft 2023 – 2025 MTFF/FSP’ presented by the Minister of Finance, Budget & National Planning, Mrs. Zainab Ahmed, said, “Revenue generation remains the major fiscal constraint of the federation. The systemic resource mobilization problem has been compounded by recent economic recessions.”

Recently, the Monetary Policy Committee of the Central Bank of Nigeria raised concerns over the nation’s debt sustainability. It said the Federal Government’s debt profile was worrying and noted that there was a need for it to urgently diversify its revenue base.
Commenting on the story, economists stated that a high deficit was not good for the economy and might cause inflation, recession, and slow down growth.
Speaking to a reporter, an economic expert, and seasoned academic at the University of Uyo, Professor Akpan Ekpo, said, “This shows that expenditure has eclipsed the revenue, because they have to borrow, which is why there is a deficit.
“They can’t raise enough domestic resources to finance spending. That gap is a deficit. Talking about GDP, by the rules, it should not be more than a certain percentage of GDP, but it has exceeded that. And when you borrow, you have expectations of borrowing because if you are not transparent, we don’t know what you are borrowing for.
“If you are borrowing to finance recurrent and overhead, it is not good for the economy. If you borrow to finance capital projects, in the long run, even if you have a deficit, it will have a positive multiplier effect. The deficit, if it is used to finance recurrent, is problematic to the economy.

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“One way of solving that is to raise more of domestic revenue or cut down on expenditure that is not needed, especially, the cost of governance. There is a need to check the expenditure profile and cut down on it. Or we could do expenditure switching, where unimportant items are switched with important items.
“We are spending more than we can raise resources and we are not spending it on hard infrastructure.”
Associate professor of Economics at the Pan-Atlantic University, Lagos, Olalekan Aworinde, added that the deficit was being financed by either government borrowing, sales of government properties, or printing money.
According to him, any of these options had implications for the economy. He stated, “Loans can be good and can be bad. A loan is good if it is used for productive expenditure, but if it is used for recurrent expenditure or consumption expenditure, this is not bringing back any returns.
“If the component of this deficit is majorly recurrent expenditures, it shows that we are unlikely to have any growth. There isn’t going to be any revenue coming out from there. The implication of this is that we are likely going to have stunted growth. Stunted growth in the sense that we are not likely going to have an increase in the total values of goods and services that are produced in the country.
“If care is not taken, we are likely going to slide into recession.”
He added that financing the deficit through sales of government properties would mean the government was reducing its asset base, which did not speak well for the economy.

NPO

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Jetour T2 PHEV Storms Abuja as Jetour Steps Up Nigeria Expansion

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21 hours ago

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September 11, 2026

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Jetour T2 PHEV Storms Abuja as Jetour Steps Up Nigeria Expansion

Abuja is set for a major dose of electrified motoring as Jetour Nigeria takes its technologically advanced T2 Plug-in Hybrid Electric Vehicle (PHEV) to the nation’s capital for an experiential showcase aimed at deepening the brand’s growing footprint in Nigeria.

The Jetour T2 PHEV will headline the Jetour Experience Abuja, scheduled for September 22 to 24, 2026, following the strong reception recorded at the brand’s Lagos edition earlier this year, where customer participation, test drives and sales enquiries reportedly surged.

The move to Abuja, according to Jetour Nigeria, was largely driven by growing demand from motorists in the Federal Capital Territory who have been seeking an opportunity to experience the brand’s latest vehicles, particularly the T2 PHEV.

The Abuja activation will feature test drives, product demonstrations and interactions with Jetour’s technical and sales teams, giving prospective buyers first-hand access to the SUV and its plug-in hybrid technology.

Jetour Nigeria, the sole authorised distributor of the brand in the country, is also leveraging an expanding nationwide dealer network comprising Elizade Nigeria Limited, New Era AutoVehicle Services Limited, Kojo Motors, Germaine Auto Centre, TAB Autos Limited, R.T. Briscoe Motors and Mandilas Autos to strengthen sales and after-sales support across key markets.

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The company said the decision to stage the Abuja experience was also driven by requests from patrons and prospective customers in the capital who want an opportunity to experience Jetour’s latest products, including the technologically advanced T2 PHEV.

The Jetour T2 PHEV combines rugged SUV capability with hybrid efficiency, advanced technology and comprehensive safety features, positioning it as an attractive option for Nigerian motorists seeking performance, comfort and improved fuel economy.

Since its entry into the Nigerian market, Jetour has recorded growing acceptance, with its SUV range gaining popularity among families, professionals and adventure enthusiasts.

The brand’s expanding customer base has been supported by competitive pricing, after-sales service and vehicles engineered to cope with diverse road and driving conditions across Nigeria.

Jetour’s growing reputation has also been reinforced by a number of local and international recognitions spanning product quality, design, innovation and customer satisfaction.

Its vehicles have also earned strong global safety ratings, with the T2 achieving a 5-Star NCAP safety rating, placing it among vehicles meeting high benchmarks for occupant safety.

The Abuja event is expected to feature test drives, product demonstrations and direct interactions with Jetour’s technical and sales teams, giving visitors an opportunity to experience the brand’s products and understand the technology behind the T2 PHEV.

Beyond showcasing its expanding SUV lineup, Jetour said the Abuja activation reflects its commitment to bringing the brand’s ownership and customer experience closer to motorists across Nigeria.

With the Federal Capital Territory as its next destination, Jetour is looking to build on the momentum generated in Lagos while deepening its footprint in one of Nigeria’s most important automotive markets.

 

Jetour T2 PHEV Storms Abuja as Jetour Steps Up Nigeria Expansion

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Honda shakes up Nigeria operations, dissolves HAWA, retains HMN 

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2 days ago

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September 10, 2026

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Honda shakes up Nigeria operations, dissolves HAWA, retains HMN 

Japanese automobile giant, Honda, has overhauled its operations in Nigeria, dissolving its automobile arm, Honda Automobile Western Africa Limited, and folding its business into Honda Manufacturing Nigeria Limited.

The restructuring, which took effect on September 1, 2026, followed the sanctioning of the merger by the Federal High Court, with HMN emerging as the surviving entity.

Under the new arrangement, HAWA, which had been responsible for Honda’s automobile business operations in the country, has ceased to exist as a separate corporate entity, while HMN has taken over its assets, liabilities, contracts, rights, obligations and ongoing business operations.

Honda, however, moved quickly to allay concerns over the development, assuring customers, dealers and business partners that the restructuring would not disrupt its automobile operations or affect the level of service and support they receive.

In a notification to its business partners dated August 31, 2026, Honda said the restructuring had resulted in the consolidation of both companies into “one unified entity”, with HMN assuming all assets, liabilities, rights, obligations, contracts, undertakings and business operations previously held or conducted by HAWA.

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The development means that existing relationships, arrangements and commitments involving HAWA will henceforth be managed and administered by HMN.

The company, however, stressed that the restructuring would not disrupt its automobile business operations in Nigeria.

“Automobile business operations previously conducted by HAWA will continue under HMN without interruption,” Honda assured its partners, adding that it remained committed to maintaining the same level of service, support and cooperation that customers and business partners had come to expect.

The restructuring is also expected to streamline Honda’s corporate structure in Nigeria by bringing its manufacturing and automobile business operations under a single surviving entity.

Honda said it was currently updating relevant corporate records and information as part of the integration process. These include corporate details, registered address, authorised signatories, management information and other related documentation.

It added that any changes requiring the attention of its business partners would be communicated in due course.

The company further requested the continued support and cooperation of its partners during the transition, while providing a copy of the Federal High Court order sanctioning the merger as an appendix to its notification.

 

Honda shakes up Nigeria operations, dissolves HAWA, retains HMN

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Fire Scare at Abuja Train Station as Electrical Fault Sparks Blaze, NRC Assures Passengers

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2 days ago

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September 10, 2026

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Fire Scare at Abuja Train Station as Electrical Fault Sparks Blaze, NRC Assures Passengers

Fire Scare at Abuja Train Station as Electrical Fault Sparks Blaze, NRC Assures Passengers

A minor fire caused by an electrical fault broke out at the Idu Train Station in Abuja on Wednesday night, but the incident did not disrupt operations on the Abuja–Kaduna train route, the Nigerian Railway Corporation (NRC) has said.

The fire, which occurred in the station’s low-voltage electrical room, was detected at about 8:30 p.m. and was quickly brought under control by maintenance personnel.

A preliminary inspection showed that some electrical supply cables connected to the station’s control panels were damaged in the incident.

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However, the NRC said the station’s solar power system was not affected, while power had been temporarily restored to the lifts and escalators.

According to the Corporation’s Chief Public Relations Officer, Callistus Unyimadu, all the lifts and escalators are currently operational except Lift 1.

The NRC stressed that the incident had no impact on Abuja–Kaduna train services, assuring passengers that scheduled operations would continue as normal.

The Corporation said its technical team was conducting a detailed assessment to establish the cause of the electrical fault and permanently restore the affected installations.

It added that appropriate safety measures had been put in place while the assessment and remedial work continued.

 

Fire Scare at Abuja Train Station as Electrical Fault Sparks Blaze, NRC Assures Passengers

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