FG’s Debt Service Hits ₦12.63tn, Overshoots 2025 Allocation by ₦1.9tn

Fresh data from the Budget Office shows federal debt repayments reached ₦12.63tn in January–September 2025, overshooting the prorated budget of ₦10.74tn by ₦1.90tn or 17.65%. Debt service accounted for ₦12.52tn of that total against a ₦10.45tn allocation. Domestic debt payments stood at ₦6.23tn (versus ₦5.39tn budgeted), while foreign debt service rose to ₦6.30tn (from a ₦5.06tn provision). The figures reveal that 67% of retained revenue went into servicing debt, leaving just ₦33 out of every ₦100 for salaries, overheads and capital projects. As a result, capital spending fell to ₦3.10tn against a ₦17.58tn target, and the fiscal deficit reached ₦6.03tn. Finance authorities plan to tap favourable market conditions to refinance costly obligations and seek new funding. Economists recommend boosting revenue through asset sales, tax reforms and private-sector partnerships to reduce reliance on borrowing.

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