By Muhammad Mamman
The Federal Government applied a total of ₦13.69 trillion to debt servicing as of October last year, compared with ₦8.10 trillion allocated to capital projects in the 2025 fiscal year, according to official budget implementation data.
The figures highlight the growing pressure of debt obligations on public finances, with debt servicing accounting for a significantly larger portion of government expenditure than investments in infrastructure and other capital development.
Data from the Ministry of Finance and the Budget Office show that while capital spending covered projects in critical sectors such as transportation, power, health and education, the scale of debt repayments continued to outweigh funds channelled towards long-term economic growth.
Analysts say the imbalance reflects Nigeria’s rising debt profile and the increasing cost of servicing both domestic and external loans amid high interest rates and currency pressures. They warn that sustained prioritisation of debt servicing could constrain the government’s ability to deliver on infrastructure commitments and social programmes.
The Federal Government has repeatedly maintained that its borrowing remains within sustainable limits and is largely tied to development financing. However, fiscal experts have urged stronger revenue mobilisation and spending efficiency to reduce reliance on debt and free up more resources for capital investment.
As implementation of the 2025 budget continues, attention is expected to remain on how the government balances debt obligations with the need to stimulate growth through capital expenditure.
