Nigeria’s Federal Government borrowed about $8 billion in fresh loans during the first nine months of 2025, and only around $2 billion was spent on capital projects. This is according to new budget implementation figures that are already raising difficult questions about public spending priorities.
The figures, contained in a report released by the national budget office, showed total borrowing reached N11.89 trillion (approximately $8 billion) between January and September 2025.
Unfortunately, only about 26 percent of the borrowed funds translated into visible project spending.
The loans included about $4.7 billion in domestic borrowing and another $3.2 billion in multilateral and bilateral project tied financing.
The report further showed that actual borrowing exceeded the government’s original projection for the period by nearly 15 percent. Yet capital spending achieved less than 18 percent of its target allocation. That gap is now fueling renewed scrutiny over how borrowed funds are being deployed.
Economists say the numbers deepen concerns that Nigeria’s rising debt burden is not translating into proportional economic expansion, infrastructure delivery or productivity growth.
If only about $2 billion went into projects, what exactly happened to the remaining $6 billion borrowed during the period?
A large portion likely went into recurrent expenditure, debt servicing obligations and fiscal support for government operations. Nigeria’s rising interest payments have increasingly consumed federal revenues, while subsidy related pressures, exchange rate instability and inflation continue stretching public finances.
Still, critics argue that borrowing without visible productive outcomes weakens long term growth prospects and leaves future taxpayers carrying the burden of debts that generated limited economic value.
The concerns are growing at a time when the Federal Government is already planning even more aggressive borrowing. Earlier this year, authorities increased the proposed 2026 borrowing plan to about N29.2 trillion, equivalent to nearly $19.5 billion, following an expansion in the fiscal deficit.
Former presidential candidate Peter Obi recently criticized the country’s borrowing pattern, warning that debt used for consumption rather than production risks worsening Nigeria’s economic challenges instead of solving them.
For many observers, the latest figures reinforce a growing concern surrounding Nigeria’s public finances. The country is borrowing at record levels, but the visibility of corresponding development on the ground remains far less convincing.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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