Nigeria recorded a fiscal deficit of about N5.7 trillion in the first six months of 2025, underscoring the persistent strain on public finances as revenue continues to lag far behind expenditure, even as government borrowing intensifies.

Data from the Q1 and Q2 2025 Budget Implementation Reports released by the Budget Office of the Federation show that while deficits came in below budgeted projections for both quarters, they were substantially higher than levels recorded in the same period of 2024. The figures point to a widening structural gap between what the government earns and what it spends, leaving borrowing as the primary tool for keeping the budget afloat.

In the first quarter of 2025, the Federal Government posted a fiscal deficit of N3.04 trillion. Although this was N481.81 billion, or 13.67 percent, lower than the projected quarterly deficit of N3.53 trillion, it more than doubled the N1.47 trillion deficit recorded in Q1 2024. Financing for the shortfall relied overwhelmingly on domestic borrowing, which accounted for N3.30 trillion, supplemented by N57.16 billion from privatization proceeds and N70.11 billion from multilateral and bilateral project-tied loans.

The second quarter showed a slight moderation. The fiscal deficit for Q2 2025 stood at N2.66 trillion, which was N865.14 billion, or 24.52 percent, below the projected N3.53 trillion for the quarter. This also marked an improvement from the N3.17 trillion deficit recorded in Q2 2024. Even so, borrowing remained central to financing, with domestic sources contributing N2.80 trillion.

External financing played a much larger role in the second quarter than in the first. Multilateral and bilateral project-tied loans surged to N1.60 trillion, alongside N7.76 billion in privatization proceeds. The Budget Office said the Q2 deficit translated to a deficit-to-GDP ratio of 2.64 percent, which is within Nigeria’s 3 percent ceiling and below the ECOWAS convergence threshold.

Taken together, the two quarters bring Nigeria’s total fiscal deficit for the first half of 2025 to about N5.7 trillion. While the fact that the deficits were below projections offers some relief, the absolute size of the shortfall highlights the depth of the country’s fiscal imbalance. The government continues to spend far more than it earns, with limited progress in closing the revenue gap.

A major driver of the deficit remains weak revenue performance, particularly from oil. Despite year-on-year improvements, actual oil receipts fell far short of budget assumptions in both quarters. In Q1 2025, gross oil revenue stood at N4.55 trillion, representing a massive N8.21 trillion shortfall, or 64.35 percent, from the prorated quarterly target of N12.76 trillion. While this was N1.20 trillion higher than the N3.35 trillion recorded in Q1 2024, it still exposed the fragility of oil-dependent revenue planning.

Gross non-oil revenue in Q1 also underperformed, coming in at N4.71 trillion, which was N1.34 trillion, or 22.18 percent, below the quarterly estimate of N6.05 trillion. After statutory deductions, net distributable revenue to the federal, state, and local governments stood at N8.06 trillion, a shortfall of N8.79 trillion, or 52.16 percent, from projections.

In the second quarter, oil revenue edged up slightly to N4.77 trillion but remained deeply below expectations, missing the quarterly target by N7.99 trillion, or 62.62 percent. Compared with Q2 2024, oil revenue rose by N1.59 trillion, reflecting a 33.33 percent increase, but the improvement was not enough to meaningfully change the fiscal picture.

Non-oil revenue showed mixed signals. Gross non-oil revenue in Q2 rose to N4.46 trillion, recording a positive variance of N404.26 billion, or 6.68 percent, above projections. Even with that improvement, net distributable revenue for all tiers of government reached N9.85 trillion, still N7.01 trillion, or 41.58 percent, below budget expectations.

The Budget Office attributed the persistent revenue gaps to ongoing challenges in the oil sector, including production constraints, price volatility, and structural inefficiencies in revenue remittance. These weaknesses continue to undermine budget assumptions, even as oil revenue shows modest year-on-year gains.

The pressure on public finances is being compounded by rising expenditure demands, particularly debt servicing and recurrent spending. With borrowing increasingly skewed toward domestic sources, concerns are growing about debt sustainability, higher interest costs, and the potential crowding out of private sector credit if revenue mobilization does not improve in the second half of the year.

The situation also builds on an already fragile fiscal position. Nigeria’s fiscal deficit rose sharply to N13.51 trillion in 2024, exceeding targets and breaching the Fiscal Responsibility Act 2007 deficit-to-GDP limit, according to earlier reports. That backdrop makes the continued build-up of deficits in 2025 especially worrying for policymakers and investors alike.

While the government has leaned more on concessional external loans to manage financing costs and support capital projects, the data suggests that borrowing alone cannot resolve the underlying imbalance. Without stronger and more reliable revenue streams, particularly from oil and non-oil sources, fiscal pressures are likely to persist.

As the year winds down, the report of the second half of 2025 will test whether recent improvements in non-oil revenue can be sustained and whether oil sector reforms translate into better collections. For now, the first-half numbers paint a clear picture: Nigeria’s fiscal challenges remain deeply rooted, with deficits narrowing against projections but widening against economic reality.

Nvidia has agreed to acquire Groq, a fast-rising designer of high-performance artificial intelligence accelerator chips, in a $20 billion all-cash deal that would rank as the largest acquisition in the chipmaker’s history, according to Alex Davis, chief executive of Disruptive, which led Groq’s most recent funding round.

Davis said the transaction came together rapidly, catching even long-time backers by surprise. Groq raised $750 million just three months ago at a valuation of about $6.9 billion, underscoring both the pace of capital inflows into the AI hardware space and the sharp premium Nvidia is now willing to pay to lock in strategic assets.

Investors in that September round included BlackRock, Neuberger Berman, Samsung, Cisco, Altimeter, and 1789 Capital, where Donald Trump Jr. is a partner. Groq is expected to formally notify its investors of the agreement later on Wednesday. The deal covers Groq’s core assets, though its early-stage Groq Cloud business is excluded, Davis said.

For Nvidia, the scale of the acquisition marks a clear departure from its historical playbook. The company’s biggest prior deal was the $7 billion purchase of Israeli networking specialist Mellanox in 2019. Since then, Nvidia’s balance sheet has ballooned alongside the AI boom. At the end of October, the company reported $60.6 billion in cash and short-term investments, up from $13.3 billion in early 2023, giving it the financial firepower to pursue transformative acquisitions without tapping the debt markets.

Groq, founded in 2016, has positioned itself as a specialist in inference-focused AI accelerators, chips designed to speed up the process by which large language models generate outputs once they are trained. With demand for inference capacity surging as AI systems move from experimentation to deployment, Groq has been targeting revenue of $500 million this year. Davis said the company was not seeking a buyer when Nvidia made its approach.

Groq’s roots trace back to Google’s internal AI hardware efforts. The company was founded by a group of former engineers, including chief executive Jonathan Ross, one of the creators of Google’s tensor processing unit, or TPU. TPUs have emerged as one of the few credible alternatives to Nvidia’s graphics processing units for certain AI workloads, particularly within Google’s own ecosystem.

In its initial SEC filing in late 2016, announcing a $10.3 million fundraising, Groq listed Ross alongside Douglas Wightman, an entrepreneur and former engineer at Google X, the company’s “moonshot factory.” Since then, Groq has steadily built a reputation for architectural efficiency and performance, attracting attention from both hyperscalers and investors hunting for ways to reduce reliance on Nvidia’s dominant GPU platform.

The proposed acquisition would therefore carry strategic weight beyond pure scale. By absorbing Groq, Nvidia would be neutralizing a potential rival in inference acceleration while folding its technology and talent into Nvidia’s own roadmap. It would also strengthen Nvidia’s grip on a market that is shifting from training-heavy workloads to inference at scale, a transition expected to define the next phase of AI infrastructure spending.

The deal also fits into a broader pattern of aggressive ecosystem investment by Nvidia. As its cash pile has grown, the company has backed a range of AI-linked ventures, from energy and data-center specialist Crusoe to model developer Cohere. It has also expanded its stake in CoreWeave, the AI-focused cloud provider that has been preparing for a public listing this year.

In September, Nvidia said it intended to invest up to $100 billion in OpenAI, with the startup committing to deploy at least 10 gigawatts of Nvidia products. While a formal agreement has yet to be announced, the scale of the proposed investment highlighted Nvidia’s willingness to anchor itself at every layer of the AI stack. That same month, Nvidia disclosed plans to invest $5 billion in Intel as part of a partnership, an unexpected alignment between two long-time rivals amid intensifying competition with Asian chipmakers.

Groq’s sale also comes as other AI chip startups reassess their paths. Cerebras Systems, another high-profile player known for its wafer-scale processors, pulled its planned initial public offering in October after raising more than $1 billion in a private funding round. In an SEC filing, Cerebras said it did not intend to proceed with the offering “at this time,” without giving a reason, though the company later told CNBC it still aims to list when conditions allow.

Taken together, these moves point to a market entering a new phase. The early wave of AI chip startups promised alternatives to Nvidia’s hardware dominance. Now, with Nvidia’s valuation, cash reserves, and strategic urgency at record levels, consolidation is accelerating.

If completed, the Groq acquisition would send a message that Nvidia is no longer content to simply supply the picks and shovels of the AI gold rush. It is increasingly intent on owning the mine.

Microsoft is laying the groundwork for one of the most ambitious software rewrites in its history, as it moves to translate large swathes of its sprawling codebase from C and C++ into Rust, a memory-safe programming language it believes is critical to the future of secure software.

“My goal is to eliminate every line of C and C++ from Microsoft by 2030,” Galen Hunt, a distinguished engineer at the company, wrote in a recent LinkedIn post that doubled as a recruitment pitch.

Hunt said Microsoft plans to lean heavily on a combination of artificial intelligence and algorithmic tooling to make the effort feasible at scale.

“Our strategy is to combine AI and algorithms to rewrite Microsoft’s largest codebases,” he said, describing what he called a “North Star” ambition of enabling “1 engineer, 1 month, 1 million lines of code.”

The post points to an open role for a Principal Software Engineer who would help build and refine the internal tools designed to pull off that goal. According to Hunt, the role is focused on evolving Microsoft’s infrastructure to support the translation of its largest and most complex C and C++ systems into Rust.

Microsoft has already made progress on that front. Hunt said the company has built a “powerful code processing infrastructure” capable of analyzing source code at scale and constructing detailed graphs that map how large systems fit together. On top of that, Microsoft is applying AI agents, guided by algorithms, to modify and rewrite code automatically across vast repositories.

The new hire would join Microsoft’s Future of Scalable Software Engineering group, which Hunt described as having a mandate to tackle technical debt at an industrial scale. The team works with internal product groups to pioneer new tooling, then pushes those capabilities across Microsoft’s product portfolio and, in some cases, out into the wider software ecosystem.

The strategic motivation is clear. Unlike C and C++, which give developers fine-grained control over memory but are notoriously error-prone, Rust is designed to be memory-safe by default. It prevents entire classes of vulnerabilities, such as out-of-bounds memory access and use-after-free bugs, flaws that have long been a major source of security incidents and exploits.

That security argument has gained political weight in recent years. Governments and cybersecurity agencies have increasingly urged software vendors to adopt memory-safe languages, with Rust often singled out as a preferred option. Microsoft itself has echoed that push. In 2022, the chief technology officer of Microsoft Azure said Rust should become the default language for new projects. Company researchers have since developed tools that automatically convert certain types of C code into Rust, and Microsoft has released tooling to support writing Windows drivers in Rust.

What makes Hunt’s statement stand out is the sheer scope of what is being proposed. Microsoft’s software estate is vast and deeply layered. Beyond flagship products like Windows, Office, and Azure, the company maintains thousands of internal services and tools. According to MSportals.io, there are more than 500 active online portals alone for managing Microsoft products, a figure that hints at the complexity behind the scenes.

Rewriting that volume of legacy code will be a monumental task. Even with AI-assisted translation, large systems built over decades tend to be riddled with edge cases, undocumented assumptions, and tightly coupled components that resist clean automation. Any attempt to remove C and C++ entirely will almost certainly surface technical and operational challenges that no algorithm can neatly resolve.

Still, Microsoft appears willing to commit resources to the effort. The job Hunt referenced requires working from the company’s Redmond headquarters three days a week and offers a salary range of $139,900 to $274,800 a year, reflecting both the seniority of the role and the scale of the problem it is meant to address.

If Microsoft succeeds, the implications would stretch well beyond the company itself. A large-scale migration to Rust across one of the world’s biggest software vendors would strengthen the case for memory-safe languages as an industry standard, and could reshape how large, long-lived codebases are maintained in the age of AI-assisted development. ,

However, the 2030 deadline stands as an audacious marker of intent for now, and a signal that Microsoft sees the future of its software as safer, more automated, and far less dependent on the languages that helped build its past.