May 28 (THEWILL) — Nigeria’s total expenditure fell 41.57 percent below its prorated quarterly budget target to ₦8.03 trillion in the third quarter of 2025, highlighting continued fiscal constraints despite modest economic growth and improved revenue performance.
This was disclosed in the Federal Government’s Q3 2025 Budget Implementation Report published by the Budget Office of the Federation.
The report showed that actual spending was ₦5.71 trillion lower than the prorated quarterly budget estimate of ₦13.75 trillion for the period. However, the expenditure level still represented an increase of ₦390 billion, or 4.86 percent, compared to the ₦7.64 trillion recorded in the third quarter of 2024.
According to the report, non-debt recurrent expenditure stood at ₦2.66 trillion during the quarter, representing a decline of ₦739.01 billion or 21.75 percent from the quarterly target of ₦3.40 trillion. Year-on-year, however, it increased by 31.2 percent from ₦1.83 trillion recorded in Q3 2024.
The Federal Government also recorded a fiscal deficit of ₦330 billion during the quarter, significantly lower than the ₦3.17 trillion deficit posted in the corresponding period of 2024. The report said the deficit-to-GDP ratio stood at 2.29 percent, remaining within Nigeria’s fiscal sustainability threshold and the ECOWAS convergence benchmark of 3 percent.
Statutory transfers during the quarter amounted to ₦360.32 billion, while deficit financing included ₦970 billion in domestic borrowing and ₦120.61 billion in privatisation proceeds. The report also listed multilateral and bilateral project-tied loans worth ₦3.13 trillion.
Between January and July 2025, the Federal Government generated ₦13.67 trillion in revenue but spent ₦20.40 trillion. Debt servicing was estimated at ₦16.26 trillion annualised, implying that Nigeria spent nearly 70 percent of its revenue servicing debt.
Despite the fiscal pressures, the report noted that Nigeria’s economy grew by 3.98 percent in Q3 2025, driven by ongoing economic reforms and improved macroeconomic stability.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
