Nigeria’s debt and salary costs exceed government revenue in 2025
For the first seven months of 2025, Nigeria’s Federal Government spent more on debt service and salaries than it earned in total revenue. Despite claims by Bola Tinubu in September 2025 that the country met its revenue targets, official documents show a significant shortfall, especially in oil income. Capital projects have suffered deep cuts as a result, with most funds going to recurrent expenses. Experts warn that this trend threatens investment in critical sectors and undermines budget credibility.
TLDR
- Debt service and salaries consumed about 105% of government revenue between January and July 2025, with total revenue at N13.67tn and these expenses totaling N14.32tn.
- Oil revenue fell short by 62%, while non-oil taxes like VAT and Company Income Tax slightly outperformed targets but couldn’t offset the gap.
- Capital spending was slashed by nearly 74%, with most capital projects delayed or rolled over into future budgets.
- Bola Tinubu’s claims of meeting revenue targets were contradicted by official fiscal documents, highlighting ongoing fiscal stress.
- Experts argue that late budgets and frequent rollovers undermine planning and that the government’s new approach aims to restore credibility by limiting new capital projects.
