The Federal Government devoted nearly three-quarters of its total revenue to debt servicing in the first seven months of 2025, underscoring the mounting strain Nigeria’s debt obligations are exerting on public finances. An analysis of the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper released by the Budget Office of the Federation shows that between January and July 2025, the Federal Government generated total revenue of N13.67 trillion. Within the same period, N9.81 trillion was spent servicing domestic and external debts, meaning 71.8 per cent of all revenue was absorbed by debt service alone. When personnel costs for ministries, departments and agencies as well as government-owned enterprises are factored in, the fiscal pressure becomes even more pronounced. Personnel expenditure amounted to N4.51 trillion, pushing combined spending on debt service and wages to N14.32 trillion. This figure exceeded total revenue for the period, implying that debt servicing and salaries alone accounted for about 105 per cent of Federal Government income in the first seven months of the year. Budget Office data shows that the revenue shortfall was driven largely by a sharp decline in oil earnings.

Sun