Budget shortfalls to be substantial in Ghana, Nigeria – Fitch Solution

Fitch Solutions has warned of significant budget shortfalls in Ghana, Uganda, and Nigeria, as many Sub-Saharan African governments will rely on borrowing to address fiscal gaps in 2025.

The report highlights ongoing challenges in fiscal consolidation, with high debt servicing costs and structural revenue generation issues limiting tax-driven deficit reduction.

Domestic yields for SSA 10-year government bonds reached 12.63% in Q2 2024, influenced by global financial tightening and domestic pressures. Elevated yields persist into Q4 2024, particularly in Nigeria and Kenya, amid continued monetary tightening and political instability.