2025-12-18 00:00:00
According to Punch, official budget documents show that debt service and personnel costs consumed more than the Federal Government’s total revenue in the first seven months of 2025, underscoring the pressure on fiscal space.
The report says earnings came in well below pro-rata targets, forcing deep cuts to capital spending and tightening the room for new projects without additional borrowing or revenue reforms.
The figures add weight to growing concerns about budget credibility, cash-backing of appropriations, and the need for stronger domestic revenue mobilisation.
BusinessDay reported that “debt servicing and personnel costs consumed more than the Federal Government’s entire revenue” for the period, citing official budget documents. (BusinessDay)
Another report on the same figures said Nigeria earned far below targets between January and July and that the gap hit capital releases hard. (Legit.ng)
Analysis/Echotitbits take: When “fixed” obligations swallow revenue, the real economy suffers via delayed infrastructure and weak service delivery. Watch for 2026 revenue measures, credible subsidy/accounting reforms, and how government aligns spending plans with cash realities.
Source: Punch — December 18, 2025 (https://punchng.com/salaries-debt-service-gulp-105-of-govt-revenue/)
Photo credit: Punch
