Federal Government Borrowed N11.89tn but Spent Only N3.10tn on Capital Projects in Nine Months

The Federal Government borrowed a total of N11.89 trillion in the first nine months of 2025 but allocated only N3.10 trillion to capital expenditure during the same period, according to the third-quarter Budget Implementation Report released by the Budget Office of the Federation.

The figures highlight a significant gap between the government’s debt accumulation and its actual spending on infrastructure and long-term development projects such as roads, railways, schools, and hospitals.

Of the total borrowings, domestic sources accounted for N7.08 trillion, raised through instruments such as Treasury Bills and government bonds, while multilateral and bilateral project-tied loans contributed N4.81 trillion from international institutions, including the World Bank and the African Development Bank.

Notably, no foreign commercial borrowing was recorded during the review period, despite the government having budgeted N1.38 trillion for such borrowings within the first three quarters of the year.

Capital expenditure, which covers government investment in infrastructure and other long-term assets, stood at N3.10 trillion between January and September 2025, a fraction of the total amount borrowed during the same period.

The report, covering the period from January to September 2025, offers a detailed account of how budgeted revenues and expenditures are being implemented across government ministries, departments, and agencies.

The data has renewed concerns among analysts and fiscal observers about the efficiency of public borrowing, with questions arising over whether the volume of debt being accumulated is translating into proportionate improvements in the country’s infrastructure and development outcomes.