Nigeria's FG Borrows N11.89 Trillion, Spends N3.1 Trillion

In the first nine months of 2025, the Federal Government of Nigeria recorded N11.89 trillion in fresh loans, which included N7.08 trillion from domestic borrowing and N4.81 trillion from multilateral and bilateral project loans. Despite this substantial borrowing, only N3.1 trillion was spent on capital expenditure, resulting in a shortfall of N14.48 trillion against the budgeted N17.58 trillion for the period.

The budget office reported that the actual borrowing exceeded the projected N10.34 trillion for the first three quarters. Notably, there was zero spending recorded in the capital expenditure line for multilateral and bilateral project loans, despite a budget allocation of N2.52 trillion for this category.

The report indicates a significant gap between borrowing and project execution, with only N780.28 billion released for capital projects in the third quarter. Concerns were raised by Peter Obi, former Labour Party presidential candidate and ex-governor of Anambra State, regarding the lack of translation of borrowing into economic growth and improved living standards amidst Nigeria's rising debt profile.