By Nchetachi Chukwuajah
The Budget Office of the Federation says the Federal Government spent N3.41 trillion on debt servicing in the third quarter (Q3) of 2025, a figure it said is 4.8 percent below the amount projected for the period.
The Budget Office disclosed this in its recent 2025 Q3 Macroeconomics & Financial Analysis Report, noting that the amount spent on debt servicing in Q3 2025 is N171.9 billion below the projected N3.58 trillion for the period.
It said, “Total Debt Service in the third quarter of 2025 stood at N3.41 trillion, indicating a decrease of N171.90 billion (4.80 percent) below the N3.58 trillion projected for the quarter.”
The office said N1.8 trillion was projected for domestic debt servicing in Q3 2025, but actual spending stood at N111.07 billion, or 6.18 percent above the projection for the quarter.
On the other hand, external debt servicing stood at N1.69 trillion during the quarter, representing N211.72 billion or 12.55 percent below the projected figure.
The report stated that total government expenditure in Q3 2025 was reportedly N8.03 trillion, representing a N5.71 trillion or 41.57 percent decrease from the prorated quarterly budget of N13.75 trillion.
It, however, said expenditure was N390 billion or 4.86 percent higher than the N7.64 trillion recorded in the corresponding quarter of 2024.
The report stated, “A total of N2.66 trillion was spent on non-debt recurrent expenditure in the third quarter of 2025.
“This represents a decrease of N739.01 billion (21.75 percent) from the quarterly estimate of N3.40 trillion but a N0.83 trillion (31.20 percent) increase from the N1.83 trillion recorded in the third quarter of 2024.”
The report also showed that Nigeria recorded a fiscal deficit of N330 billion in Q3 2025, representing a decline of 90.68 percent from the projected quarterly deficit of N3.53 trillion.
“The revenue and expenditure outturn of the Federal Government resulted in a fiscal deficit of N0.33 trillion in the third quarter of 2025.
“This was N3.20 billion (90.68 percent) below the projected quarterly fiscal deficit of N3.53 trillion.
“This translates to a deficit to GDP ratio of 2.29 percent in the quarter under review, which is within the 3 percent threshold for the country and the ECOWAS convergence criteria,” the report said.
The budget office noted that the fiscal deficit was significantly lower than the N3.17 trillion deficit recorded in Q3 2024, adding that the deficit was financed through privatisation proceeds and domestic borrowing.
