Nigeria’s fiscal illusion: Why size has been mistaken for wealth

    Oluyemi Adeosun | Insights | Feb 12, 2026    
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Nigeria is often described as a rich country held back by poor management. The numbers tell a tougher, less comforting story. Nigeria is not rich. It is fiscally weak, and mismanagement only deepens that weakness. In dollar terms, the federal budget for 2025 is worth about $33 to $34 billion, down sharply from roughly $44 billion in 2024 and close to $47 billion in 2023. The reason is simple: the naira has lost purchasing power. Nominal increases in naira terms may look impressive, but what really matters is what that money can buy. To put this in perspective, New York City’s Metropolitan Transportation Authority alone runs on a budget of about $20 billion, nearly 60 percent of Nigeria’s entire federal budget, yet it serves just one urban area. Nigeria’s federal government, by contrast, must provide security, infrastructure, healthcare, and education for more than 230 million people. The limits of state capacity become impossible to ignore.

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