FG Debt Repayments Exceed Budget by Nearly N2 Trillion

The Federal Government of Nigeria's debt repayments surpassed the amended budget allocation for 2025 by nearly N2 trillion during the first nine months of the year, according to the Budget Office of the Federation's report. Total debt-related payments, including domestic and foreign debt, amounted to N12.63 trillion from January to September, compared to a prorated budget provision of N10.74 trillion, resulting in an overrun of N1.90 trillion, or 17.65 percent.

Debt servicing costs stood at N12.52 trillion, exceeding the allocated N10.45 trillion. Domestic debt servicing accounted for N6.23 trillion, while foreign debt servicing rose to N6.30 trillion.

The report indicated that 67.2 percent of the Federal Government's retained revenue of N18.63 trillion was consumed by debt servicing, leaving only N33 for salaries and capital projects from every N100 retained. The government's revenue underperformed the budget by N12.03 trillion, and the fiscal deficit for the first three quarters was N6.03 trillion.

Finance Minister Taiwo Oyedele mentioned the need for urgent revenue mobilization and expenditure rationalization to address the fiscal challenges.