Nigerian government spent N12.52trn to service debt in 9months

…exceeding budget target

The federal government, in the first nine months of 2025, spent a total of N12.52 trillion on debt servicing, exceeding the N10.74 trillion budgeted for in the 2025 budget. This is according to the 2025 third-quarter budget implementation report, as published by the budget office of the federation.

BusinessDay’s analysis of the report showed that a total of N6.23 trillion was used to service domestic debt in the period (January to September), higher than N5.39 trillion in the budget, while N6.30 trillion was used to service foreign debt. Also, higher than the N5.06 trillion stated in the budget.

The report also indicated that 67.2 percent of the Federal Government’s retained revenue of N18.63 trillion was spent on debt service in the first nine months of 2025.

The government’s gross revenue declined by 39 percent to N18.6 trillion in the period, leaving a gaping N12 trillion shortfall when compared to the N30.6 trillion revenue expected in the period.

The total retained revenue of the Federal Government stood at N16.48 trillion in the period (January to September 2025). This is also a shortfall of N12.03 trillion (42.20 percent) from the 2025 three-quarter prorate budget estimate.

Based on the amended Budget Framework, the sum of N40.89 trillion was projected to fund the federal budget in 2025, indicating a quarterly share of N10.22 trillion.

Of the N10.22 trillion revenue expected in each quarter, the federal government has consistently fallen short in its actual revenue, generating N4.95 trillion in the first quarter, N5.97 trillion in the second quarter and N7.70 trillion in the third quarter.

BusinessDay’s analysis of the report showed that the total gross non-oil revenue in the period amounted to N17.38 trillion, indicating a decrease of N789.55 billion when compared to the N18.17 trillion budget estimate.

A breakdown of the total non-oil revenue indicated that Company Income Tax amounted to N7.53 trillion, Value Added Tax amounted to N6.41 trillion, and the Electronic Money Transfer Levy was N310.42 billion.

The Solid Minerals & Other Mining sector also recorded a revenue of N54.79 billion, indicating an increase of N24.12 billion (87.21 percent) above the three-quarter budget estimate of N27.66 billion.

The Nigerian Police Trust Fund (NPTF) Levy of N0.47 billion, Customs & Excise Duties of N2.83 trillion, and Special Levies (Federation Account) revenue collection of N209.43 billion were, however, below their corresponding three-quarter 2025 budget estimates of N3.75 billion, N4.65 trillion and N718.82 billion.

Also, Exchange Gain, which had zero projection, yielded N84.70 billion in the three quarters under review. On the other hand, revenue from the oil sector performed below budget projections for the period.

The report showed that revenue from crude oil and gas sales was N1.33 trillion, petroleum profit and gas taxes were N6.14 trillion, royalties (Oil & Gas) were N5.54 trillion, and Incidental oil revenue (Royalty Recovery & Marginal Field Licenses) was N475.90 billion.

These were below their prorated three-quarter projections of N3.53 trillion, N23.54 trillion, N0.30 trillion and N887.65 billion.

The federal government also generated N32.72 billion from concessional rentals and N39.38 billion from miscellaneous (pipeline fees). This surpassed their three-quarter projections of N15.07 billion and N15.02 billion.