Nigeria’s total expenditure fell 41.57% below its prorated quarterly budget target to N8.03 trillion in the third quarter of 2025.
This is according to the Federal Government’s 2025 third quarter Budget Implementation Report, published by the Budget Office of the Federation, which releases quarterly budget implementation reports.
However, the figure was N0.39 trillion, or 4.86%, higher than the N7.64 trillion recorded in the third quarter of 2024.
The report also showed that the Federal Government recorded a fiscal deficit of N0.33 trillion in the period under review.
What the report is saying
According to the report, the N8.03 trillion expenditure recorded in the third quarter of 2025 represents a shortfall of N5.71 trillion from the N13.75 trillion prorated quarterly budget for the period.
This represents a decline of N5.71 trillion, or 41.57%, from the N13.75 trillion prorated quarterly budget for the period.
- “Total expenditure of Government in the third quarter of 2025 stood at N8.03 trillion representing a decrease of N5.71 trillion (41.57 percent) from the N13.75 trillion prorate quarterly budget for the period. It was however N0.39 trillion (4.86 percent) above the N7.64 trillion reported in the third quarter of 2024.
- “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, or 21.75%, from the quarterly estimate of N3.40 trillion, but a N0.83 trillion, or 31.20%, increase from the N1.83 trillion recorded in the third quarter of 2024,” the report said.
According to the report, this translates to a deficit-to-GDP ratio of 2.29% in the quarter under review, which is within the 3% threshold for the country and the ECOWAS convergence criteria.
The report also noted that statutory transfers amounted to N360.32 billion during the review period.
Get up to speed
Between January and July 2025, the Federal Government generated N13.67 trillion in revenue and spent N20.40 trillion as total expenditure.
- When annualised, revenue was estimated at N23.43 trillion, compared with debt service of N16.26 trillion.
- This means Nigeria spent N6.94 out of every N10 earned, or 69.41% of revenue, on debt service in 2025.
In 2024, total Federal Government revenue stood at N20.98 trillion, according to the Federal Government’s budget outturn.
Total debt service in 2024, based on quarterly data, was N12.74 trillion.
This reflects the pressure debt obligations continue to place on fiscal sustainability and the government’s ability to fund growth-enhancing investments.
More insights
The latest report also showed that the Q3 2025 fiscal deficit of N0.33 trillion was far lower than the N3.17 trillion deficit recorded in the third quarter of 2024.
The deficit was financed through privatisation proceeds and domestic borrowing.
- Available deficit financing items listed in the report included domestic borrowing of N970.00 billion and privatisation proceeds of N120.61 billion.
The report also listed multilateral and bilateral project-tied loans of N3.13 trillion during the period under review.
- Nigeria’s economy grew by 3.98% in the third quarter of 2025, which the report described as an indication of improved economic performance and stability.
The report attributed the growth to various economic policy measures being implemented by the Federal Government and said the economy was expected to continue improving in subsequent quarters of 2025.
What you should know
Nairametrics had earlier reported that Nigeria’s total debt service has risen sharply in recent years, increasing to N16.26 trillion in 2025 from N7.79 trillion in 2023.
Since Q3 2023, when the current administration took office, quarterly debt service has remained elevated, peaking at a record N4.86 trillion in Q4 2025.
