Nigeria’s total expenditure dropped 41.57% below its prorated budget target in the third quarter of 2025, highlighting continued fiscal pressures despite signs of economic improvement.
According to the Federal Government’s 2025 Third Quarter Budget Implementation Report released by the Budget Office of the Federation, total expenditure stood at N8.03 trillion during the period, falling short of the prorated quarterly budget target of N13.75 trillion by N5.71 trillion.
Despite the shortfall, the expenditure figure represented a marginal increase of N0.39 trillion, or 4.86%, compared to the N7.64 trillion recorded in the corresponding period of 2024.
The report further revealed that the Federal Government recorded a fiscal deficit of N0.33 trillion in Q3 2025, significantly lower than the N3.17 trillion deficit posted in the same quarter of 2024. The deficit was financed through domestic borrowing and privatisation proceeds, with available financing sources including N970 billion from domestic borrowing and N120.61 billion from privatisation activities.
Between January and July 2025, the Federal Government generated N13.67 trillion in revenue while total expenditure reached N20.40 trillion. When annualised, government revenue was estimated at N23.43 trillion, compared to projected debt service obligations of N16.26 trillion.
This indicates that approximately 69.41% of government revenue in 2025 was allocated to debt servicing, underscoring the growing pressure debt obligations continue to place on Nigeria’s fiscal sustainability and the government’s capacity to fund critical growth-oriented investments.
For comparison, total Federal Government revenue in 2024 stood at N20.98 trillion, while debt service obligations for the year reached N12.74 trillion based on quarterly budget data.
The report also disclosed that Nigeria secured multilateral and bilateral project-tied loans amounting to N3.13 trillion during the review period.
Meanwhile, the Federal Government noted that Nigeria’s economy expanded by 3.98% in the third quarter of 2025, attributing the growth to ongoing economic reforms and policy measures introduced by the administration. The report expressed optimism that economic conditions would continue to improve in subsequent quarters of the year.
Recent data also shows that Nigeria’s debt service burden has risen sharply in recent years. Total debt servicing climbed from N7.79 trillion in 2023 to N16.26 trillion in 2025, with quarterly debt service remaining consistently elevated since the current administration assumed office in Q3 2023. Debt servicing peaked at a record N4.86 trillion in Q4 2025.
