FG Over-borrows N1.54 trn, Spends Only 17.7% of Capital Budget

Official data for January–September 2025 show the federal government borrowed N11.89 trn, exceeding the N10.34 trn target by N1.54 trn. Yet only N3.10 trn—17.66% of the N17.58 trn capital budget—was spent. Domestic borrowing hit N7.08 trn, overshooting its N6.44 trn provision by 9.94%. Multilateral and bilateral loans surged 90.5% above plan, reaching N4.81 trn. Despite a N2.52 trn allocation, zero was disbursed under project-tied loans in this period. Capital outlays by MDAs fell 91.3% short of their N13.90 trn target. Government enterprises matched their N615.68 bn budget, while donor-funded projects exceeded expectations at N1.08 trn. The Budget Office blames slow cash releases and shifting priorities. Analysts warn that borrowing far outpaces deployment, raising fresh concerns over debt use as servicing costs climb.

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