Nigeria’s debt servicing obligations remained a significant burden in the first nine months of 2025, consuming over 67% of the Federal Government's revenue during the period. Data from the 2025 Third Quarter Budget Implementation Report reveals that total debt service amounted to N12.52 trillion between January and September 2025.

This figure means that for every N100 earned by the government, more than N67 was directed towards repaying existing debt. This highlights the mounting pressure on public finances and limits fiscal flexibility.

Debt servicing in the third quarter of 2025 alone reached N3.41 trillion, accounting for approximately 44% of the revenue generated in that quarter. The split between domestic and external debt repayment was relatively balanced over the nine months, with domestic debt service at N6.32 trillion and external debt service at N4.93 trillion.

On a quarterly basis, domestic debt service in Q3 was N1.80 trillion, while external debt service stood at N1.69 trillion. When measured against the net distributable revenue (FAAC) of N10.29 trillion in Q3, debt service accounted for over 33%.

Revenue performance during the first nine months of 2025 was uneven. Total Federal Government revenue reached N18.63 trillion, significantly below the prorated budget target of N30.67 trillion, resulting in a revenue gap of N12.04 trillion. The quarterly revenue of N7.70 trillion also fell 24.6% short of the projected N10.22 trillion.

Underperformance in oil and customs revenue contributed to the fiscal strain. In Q3, oil revenue was N2.45 trillion, representing 31.9% of total revenue and missing its target by 53.26%. Customs revenue also saw a shortfall of N262.59 billion, or 37.76%.

Average crude oil production during the quarter was 1.64 million barrels per day, below the budget benchmark of 2.12 million barrels per day. Crude oil prices averaged $68.50 per barrel, also below the budget benchmark of $75 per barrel.

The Budget Office attributed the weak oil performance to crude theft, pipeline vandalism, production disruptions, and lower international crude prices. Other contributors to revenue included Education Tax (TETFUND) at N556.92 billion (225.02% of target), Grants & Donor Funding at N280.46 billion (147.24%), Share of CIT at N248.70 billion (23.34%), and FGN Independent Revenue at N203 billion (15.43%).