FG debt repayments exceed budget allocation by nearly N2tn

Nigeria's Federal Government has significantly overshot its debt repayment budget, with total debt-related payments exceeding the allocated amount by N1.90tn in the first nine months of 2025. Data from the Budget Office of the Federation reveals that these payments reached N12.63tn, compared to a prorated budget provision of N10.74tn.

The primary driver of this overrun was debt service, which amounted to N12.52tn against a prorated allocation of N10.45tn, an excess of N2.07tn. Both domestic and foreign debt servicing contributed to this pressure, with domestic debt service exceeding its provision by N832.42bn and foreign debt service surpassing its allocation by N1.24tn.

These rising debt costs consumed a staggering 67.2% of the Federal Government's retained revenue of N18.63tn during the period. This means that for every N100 earned, approximately N67 was directed towards servicing debts, leaving only about N33 for essential expenditures such as salaries, overheads, capital projects, and other government obligations.

The report also highlighted underperformance in aggregate Federal Government revenue, falling short of projections by N12.03tn. Persistent oil revenue shortfalls were cited as a major cause, despite stronger non-oil collections. This fiscal constraint severely impacted capital spending, which stood at only N3.10tn, less than a quarter of the budgeted amount and more than four times lower than actual debt-related payments.