E-Financial
FG’s Debt Repayment Exceeds Budget by N1.9tn as Revenue Falls Short
Federal Government’s debt repayment obligations exceeded the 2025 amended budget allocation by N1.90 trillion in the first nine months of the year, according to the latest Budget Implementation Report released by the Budget Office of the Federation.
The report showed that total debt-related payments, comprising domestic debt service, foreign debt service and sinking fund obligations, rose to N12.63 trillion between January and September, compared with a prorated budget provision of N10.74 trillion.
The figure represents an excess expenditure of N1.90 trillion, or 17.65 per cent above budget.
According to the report, debt service alone amounted to N12.52 trillion during the period, exceeding the prorated allocation of N10.45 trillion by N2.07 trillion, representing an overrun of 19.8 per cent.
A breakdown of the figures showed that domestic debt service stood at N6.23 trillion, surpassing its budget provision of N5.39 trillion by N832.42 billion.
Foreign debt service also exceeded projections, rising to N6.30 trillion against an allocation of N5.06 trillion, an increase of N1.24 trillion.
The report indicated that debt servicing consumed 67.2 per cent of the Federal Government’s retained revenue of N18.63 trillion in the first nine months of the year.
When sinking fund obligations are included, debt-related payments accounted for approximately 67.8 per cent of retained revenue.
This implies that for every N100 earned by the government during the period, about N67 was used to service debt, leaving roughly N33 for recurrent expenditure, capital projects, transfers and other obligations.
The Budget Office also reported significant revenue underperformance during the period.
Aggregate Federal Government revenue stood at N18.63 trillion, falling short of the projected N30.67 trillion by N12.03 trillion, representing a 39.24 per cent shortfall.
In the third quarter alone, revenue amounted to N7.70 trillion, below the quarterly target of N10.22 trillion by N2.52 trillion.
The Budget Office attributed the weak performance largely to lower-than-expected oil revenue despite improvements in non-oil collections.
The report further showed that debt obligations continued to constrain government spending on infrastructure and development projects.
Capital expenditure amounted to N3.10 trillion during the first nine months of the year, significantly below the N17.58 trillion budgeted for the period.
This means debt-related payments were more than four times the amount spent on capital projects.
According to the report, the elevated debt service-to-revenue ratio underscores the need for stronger revenue mobilisation efforts and expenditure rationalisation to create additional fiscal space.
Total government expenditure during the period stood at N24.66 trillion, compared with a prorated budget estimate of N41.24 trillion.
The fiscal deficit was recorded at N6.03 trillion against a prorated deficit target of N10.58 trillion.
Financing items totalled N12.07 trillion, driven largely by domestic borrowing of N7.08 trillion and multilateral and bilateral project-tied loans amounting to N4.81 trillion.
Meanwhile, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the government was considering refinancing some of its costly debt obligations while exploring additional funding sources.
Speaking in an interview with Bloomberg Television, Oyedele said current market conditions offered opportunities for the government to refinance expensive debt and mobilise funds for development.
“We think that this timing is good for us to be able to maybe even refinance some of our expensive past debts, but also to raise more funding for our development at this critical time,” he said.
According to him, discussions are ongoing with multilateral institutions, including the World Bank, while investor confidence has improved following economic reforms implemented by the administration of President Bola Tinubu.
Oyedele, however, reiterated that Nigeria could no longer depend primarily on borrowing to finance development and stressed the need for a sustainable fiscal framework capable of supporting critical sectors of the economy.
Analysts say the figures highlight Nigeria’s persistent fiscal challenge, with rising debt service costs and weak revenue generation continuing to limit resources available for infrastructure development and economic growth.
Federal Capital Territory High Court has ordered Stanbic IBTC Bank Limited to pay N15 million in damages to two former customers after finding that the bank unlawfully retained and processed their personal information after they had terminated their banking relationship.
In a judgment delivered on July 29, Justice Kayode Agunloye also directed the bank to erase all personal data belonging to the claimants that it is not legally required to retain and restrained it from further processing or using such information without lawful authority or the customers’ consent.
The court held that the bank breached the Nigeria Data Protection Act (NDPA) 2023, the claimants’ constitutional right to privacy under Section 37 of the 1999 Constitution (as amended), and provisions of the Federal Competition and Consumer Protection Act (FCCPA).
The suit, marked CV/2190/25, was filed by David Ogundipe and Salami Tolulope Ibrahim, who argued that Stanbic IBTC continued to process their personal data for marketing purposes even after they had closed their corporate account with the bank.
According to the claimants, the account was shut following unresolved issues with the bank.
Despite the closure, they alleged that Stanbic IBTC continued sending promotional emails and text messages to their personal and corporate email addresses as well as their telephone numbers.
The customers said their solicitors later wrote to the bank demanding that all marketing communications cease and that their personal data should no longer be processed for promotional purposes.
Although the bank reportedly acknowledged the request and assured them that the messages would stop, the unsolicited communications allegedly continued, prompting them to seek judicial intervention.
In his ruling, Justice Agunloye held that once the banking relationship had ended and the customers had withdrawn their consent, the bank no longer had any lawful basis to process their personal data for marketing activities.
The judge ruled that the continued use of the claimants’ information amounted to an infringement of their constitutional right to privacy and constituted an unfair trade practice under the FCCPA.
The court consequently ordered Stanbic IBTC to delete all personal information relating to the claimants that it is not legally required to retain and to cease every form of data processing except where permitted by law or regulatory obligations.
Justice Agunloye also granted a perpetual injunction restraining the bank, its officers and agents from retaining, processing, transmitting or using the claimants’ personal data for marketing, promotional or any other unauthorised purpose.
While the claimants sought N250 million as damages, the court awarded N15 million as general damages, describing the amount as adequate compensation for the persistent unsolicited communications, the bank’s failure to honour requests for data erasure and the violation of the customers’ privacy rights.
The bank was further ordered to pay N500,000 as the cost of the suit, while the claim for N7 million as litigation expenses was dismissed for lack of sufficient proof.
Justice Agunloye directed that all monetary awards would attract 10 per cent post-judgment interest annually until fully settled.
However, the court declined to order the complete deletion of every record relating to the claimants, holding that banks remain under statutory obligations to retain certain customer records in compliance with financial regulations and anti-money laundering laws.
Reacting to the verdict, counsel to the claimants, O.E. Oluwadamisi of Earnest Attorneys LP, described the decision as a landmark judgment for data protection in Nigeria.
He said the ruling reinforces the mandatory nature of compliance with the Nigeria Data Protection Act and makes it clear that organisations cannot continue processing customers’ personal information after consent has been withdrawn unless authorised by law.
One of the successful claimants, David Ogundipe, welcomed the judgment, saying it represented a victory not only for the litigants but also for millions of Nigerians whose personal information is held by corporate organisations.
He expressed hope that the ruling would encourage institutions across the country to strengthen compliance with data protection laws and place greater respect on customers’ privacy rights.
The number of Bank Verification Numbers (BVNs) on the Nigerian banking industry’s fraud watchlist reached 13,117, according to the Central Bank of Nigeria (CBN).
This is coming as banks strengthen efforts to detect and prevent financial crimes.
According to the CBN’s 2025 Annual Report and Statement of Accounts, the number of BVNs on the banking industry’s fraud watchlist increased from 9,476 in 2024 to 13,117 in 2025. This represents a 38.4 per cent increase.
The apex bank explained that commercial banks, including Access Bank, Zenith Bank, United Bank for Africa (UBA), and other financial institutions, added 3,641 new BVNs to the watchlist during the year.
The report said the increase reflects stronger fraud monitoring, improved compliance, better risk management, and enhanced systems for detecting suspicious transactions.
It added that the higher number does not necessarily mean fraud has increased, but shows banks are becoming more active in identifying and blocking suspicious activities.
The report also revealed that consumer lending declined for the first time since 2019.
Outstanding consumer credit dropped by 19.89 per cent, falling from N4.72 trillion in 2024 to N3.78 trillion in 2025.
The CBN attributed the decline to high interest rates, which made borrowing more expensive for many Nigerians.
Personal loans recorded the biggest drop, falling to N1.85 trillion.
However, retail loans rose by 63.77 per cent to N1.94 trillion, making them the largest category of consumer credit for the first time in several years.
Central Bank of Nigeria (CBN), has ordered banks to refund a total N19.12 billion to customers for illegal deductions and poor complaint handling.
This is coming as bank customers lodged 23,129 complaints against financial institutions in 2025, representing 11 per cent increase over the previous year.
The apex bank also imposed N1.69 billion in penalties on financial institutions for regulatory breaches, poor complaint handling and failure to comply with its directives, according to its 2025 Annual Report.
The CBN attributed the increase in complaints to growing public confidence in its consumer protection framework rather than a deterioration in banking services.
The report stated: “The Bank received a total of 23,129 complaints from consumers of financial services in 2025, a rise of 10.53 per cent above the 20,925 in 2024. The trend reflected increased awareness and improved confidence in the Bank’s consumer complaint resolution process.”
The apex bank added: “A total of 18,824 complaints were resolved, indicating a 9.36 per cent increase over the 17,213 complaints resolved in 2024.”
On the value of disputed transactions, the CBN said: “Total claims in local currency increased to N40.61 billion from N17.13 billion in 2024. Foreign currency claims also rose, reaching $344.2 million compared with $1.06 million in the preceding year.”
According to the report, “Based on the resolved complaints, the sums of N19.12 billion and $329.3 million were refunded in 2025, compared with N9.66 billion and $0.67 million in 2024.”
The CBN said it strengthened enforcement against erring financial institutions during the year.
It stated: “During the review period, the Bank imposed 11 penalties on financial institutions totalling N1.26 billion for infractions ranging from regulatory breaches and failure to respond to regulatory queries.”
The report further disclosed: “In addition, the Bank imposed 21 penalties on financial institutions to the tune of N430 million for infractions ranging from delays in resolving customer complaints to failure to comply with the Bank’s directives.”
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