Nigeria’s Q3 2025 spending falls 41.57% short of budget target at N8.03 trillion
By Aboki Forex —
The Federal Government spent N8.03 trillion in the third quarter of 2025, missing its prorated quarterly budget target by 41.57 percent. This is according to the latest Budget Implementation Report from the Budget Office of the Federation.
The figure was N0.39 trillion, or 4.86 percent, higher than the N7.64 trillion recorded in the same quarter of 2024. But it fell short of the N13.75 trillion prorated quarterly estimate by N5.71 trillion.
Fiscal deficit narrows sharply
The report also showed that the fiscal deficit for Q3 2025 stood at N0.33 trillion. That is a sharp drop from the N3.17 trillion deficit recorded in Q3 2024.
The government financed the deficit through domestic borrowing of N970 billion and privatisation proceeds of N120.61 billion. Multilateral and bilateral project-tied loans added N3.13 trillion during the period.
Recurrent spending down, but up year on year
Non-debt recurrent expenditure was N2.66 trillion in Q3 2025. That is 21.75 percent below the quarterly estimate of N3.40 trillion. But it represents a 31.20 percent increase from the N1.83 trillion spent in Q3 2024.
Statutory transfers stood at N360.32 billion during the quarter.
Debt service pressure remains high
Between January and July 2025, the Federal Government generated N13.67 trillion in revenue and spent N20.40 trillion. On an annualised basis, revenue was N23.43 trillion against debt service of N16.26 trillion.
That means Nigeria spent N6.94 out of every N10 earned, or 69.41 percent of revenue, on debt service in 2025. In 2024, total revenue was N20.98 trillion, while debt service was N12.74 trillion.
Debt service has risen sharply in recent years, from N7.79 trillion in 2023 to N16.26 trillion in 2025. Quarterly debt service peaked at a record N4.86 trillion in Q4 2025.
Deficit-to-GDP within ECOWAS limit
The Q3 2025 deficit translated to a deficit-to-GDP ratio of 2.29 percent. That is within Nigeria’s 3 percent threshold and the ECOWAS convergence criteria.
Economy grows 3.98% in Q3
Nigeria’s economy expanded by 3.98 percent in the third quarter of 2025. The report described this as a sign of improved economic performance and stability, driven by policy measures from the Federal Government.
The government expects the economy to keep improving in the remaining quarters of the year.