Nigeria's Federal Government Debt Service Overruns 2025 Budget

Nigeria’s federal government debt repayments for the first nine months of 2025 exceeded the budget allocation by N1.90 trillion, representing a 17.7 % overrun. Debt service accounted for about 68 % of the government’s retained revenue, leaving roughly one‑third for other spending. Capital expenditure was severely constrained, totalling only N3.10 trillion against a budgeted N17.58 trillion.

In the third quarter, oil revenue fell short by N2.79 trillion, achieving just 31.9 % of the projected amount, while non‑oil revenues outperformed expectations. Overall fiscal deficit for the quarter stood at N0.33 trillion, financed through privatisation proceeds and domestic borrowing. The Budget Office highlighted persistent revenue weakness, especially from oil, and warned that the high debt‑service burden limits fiscal space and infrastructure investment.

Finance Minister Taiwo Oyedele noted improving market conditions and rising oil prices as an opportunity to refinance costly debt and raise additional funding for development projects.