Nigerian states collectively spent ₦455.38 billion on foreign debt service in 2025, up from ₦362.08 billion in 2024, according to Federation Accounts Allocation Committee (FAAC) data released by the National Bureau of Statistics (NBS). This represents an increase of ₦93.3 billion or 25.77% year-on-year.
The rise in foreign debt deductions means states had less fiscal space for salaries, capital projects, and routine governance.
Monthly Trend in 2025:
- January: ₦40.09bn
- February: ₦39.10bn (down ₦0.99bn or 2.48%)
- March–July: ₦39.10bn each month (largely fixed deductions)
- August–December: ₦36.14bn each month (down ₦2.95bn or 7.56% from July)
This step-down pattern contrasts with 2024, when foreign debt deductions fluctuated more sharply:
- January: ₦9.88bn
- February: ₦24.53bn
- March peak: ₦40.41bn
- April–July: ₦21.70bn
- August–December: ₦40.09bn
The data highlights the growing burden of foreign debt service on states’ revenues and the importance of managing fiscal obligations while maintaining essential spending.
