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.
When people and businesses gain genuine access to financial services, they gain the ability to transact securely, build savings, and access credit. That access creates the conditions for progress: more stable revenues, better business decisions, and the capacity to grow. Progress, sustained over time, is what produces financial happiness. This framework is how Moniepoint measures its impact.
According to Moniepoint 2025 Impact Report, titled creating financial happiness; “Financial happiness is the feeling of confidence and ease that comes with financial freedom and well-being. It is a condition that develops over time and requires a specific set of enablers to take hold.
For millions of people and businesses across Nigeria, those enablers, like tools and solutions to manage their finances, have historically been out of reach. Moniepoint was built to change that, and this change, for us, begins with inclusion”.
Across the world, access to digital tools is a key driver of financial inclusion. The World Bank’s Global Findex 2025 report finds that more than 60% of adults in low- and middle income economies now make or receive digital payments. In Nigeria, this figure is around 54%. Moniepoint has been a key driver in expanding this access with its POS terminals. “Our terminals also drive financial inclusion for individuals.
The report stated that, in 2025, Moniepoint enabled 100 million people to make payments via their POS terminals across the country. For customers in communities where bank branches are scarce or non-existent, a Moniepoint terminal at their local shop, market stall, or fuel station provides reliable access to digital financial services.
They can make purchases, withdraw cash, and manage their money without travelling long distances or depending solely on physical currency. Critically, customers without cards can complete transactions through direct bank transfers to the terminal’s account.
Beyond practical benefits, Moniepoint terminals have also introduced a new layer of trust to everyday commerce. “When network issues make it unclear if a payment went through, the Moniepoint terminal’s loud beep provides instant confirmation for everyone, building trust in digital payments with every transaction”.
Moniepoint POS terminals operate across all 774 local governments in Nigeria, ensuring that small sellers and large stores can accept payments reliably, regardless of location.
In 2025, millions of Nigerians, businesses and individuals alike, accessed Moniepoint services through its mobile app. Top among them are groups like women and low-income earners, who have historically been excluded from formal banking. Inclusion of women is particularly important, as they typically manage household spending and informal savings but are frequently left out of structured financial systems. “Through our app, they are gaining financial independence and greater control over their economic decisions,” the report added.
For millions of Nigerians, debit cards represent a move away from the limits of cash transactions. They enable safer, more reliable everyday payments, particularly as more local businesses begin to accept digital payments.
Moniepoint debit cards are designed to meet this need. In 2025, Moniepoint customers completed over 300 million card transactions at physical locations, largely driven by essential, food-related purchases. Most of this spending took place at neighbourhood provision shops where households buy everyday items such as rice, cooking oil, and soap.
“We’ve made access to our cards intentionally simple. Customers can get a Moniepoint debit card by requesting it within their mobile app or from neighbourhood agents, without lengthy paperwork or waiting periods. By lowering these barriers, more people are able to access financial tools and participate in the formal financial system.
“Our cards also safeguard our customers’ financial information. They don’t carry special markings or any identifiers that could expose our customers or put their financial security at risk. In the event of loss, this reduces the likelihood of targeted fraud or misuse.
“When people can pay with their debit cards at their neighbourhood stores, they can manage their spending, reduce cash handling, and transact more securely. Merchants also benefit, recording higher transaction volumes and more consistent customer activity.
“Moniepoint helps millions of businesses and individuals across Nigeria access seamless payments and banking, every day. The widespread adoption of our tools and services, as highlighted, demonstrates our critical role in expanding financial access, supporting everyday commerce, and enabling more Nigerians to participate safely and consistently in the digital economy,” the report noted.
ChatPay has launched Africa’s conversational banking platform, enabling individuals and businesses to access financial services through WhatsApp.
The Lagos-based fintech startup, is in controlled rollout, connecting WhatsApp to linked-bank management, airtime and supported electricity payments through simple conversations.
The company said the platform is designed to enable users to send money, pay bills, buy airtime and manage business transactions within WhatsApp conversations, subject to the completion of regulatory approvals and integration with licensed banking partners.
According to ChatPay, the platform is operated by CP Technology Limited and is currently undergoing a phased rollout ahead of its planned public launch.
The company said the initiative is intended to simplify access to financial services by leveraging WhatsApp, which it estimates is used by more than 50 million Nigerians monthly.
Speaking on the idea behind the platform, Adeoluwasubomi Odebunmi, product lead and co-founder, said the concept emerged while she was studying Software Engineering at Babcock University.
“I saw the gap while I was still in school—how much friction there was just to move money. I didn’t want to just study the problem. I wanted to help fix it,” she said.
Odebunmi said she had previously worked on software solutions spanning e-commerce, real estate management, school administration and artificial intelligence applications before co-founding ChatPay.
Aseoluwa Siyanbola, growth lead and co-founder, said his experience managing Nigerian bank accounts while studying abroad highlighted some of the challenges users face with digital banking services.
According to him, difficulties such as one-time password (OTP) failures and inconsistent banking applications inspired the team to explore conversational banking solutions.
“We each encountered similar challenges and came together to build a solution that simplifies everyday financial transactions,” he said.
cAbraham William, tech lead and co-founder, said the company is focused on improving access to financial services through a platform that many Nigerians already use daily.
“We want to make financial services easier to access by allowing people to carry out transactions through a familiar messaging platform,” he said.
William said he oversees the company’s engineering, technology strategy and system architecture.
ChatPay said its services will be introduced in phases as regulatory requirements are met and integrations with banking partners are completed.
The company added that its newly launched “Founding 2,500” programme will enable selected early users to test features, provide feedback and participate in product development before the platform’s wider rollout.
According to the company, interested users can register for the waitlist and the Founding 2,500 programme through its website.
Founded by Odebunmi, Siyanbola and William, ChatPay said its long-term goal is to expand conversational banking services beyond Nigeria into other African markets after its domestic rollout.
United Bank for Africa (UBA) Plc has been named Nigeria’s Best Bank for Retail Banking and Best Bank for Sustainability Leadership (ESG) at the 2026 Euromoney Awards for Excellence, reinforcing its position as one of Africa’s leading financial institutions.
The awards were presented on July 17 at The Peninsula London in the United Kingdom, recognising financial institutions that have demonstrated outstanding performance, innovation, customer impact and sustainable banking practices.
The double recognition highlights UBA’s growing influence in retail banking and its commitment to advancing environmental, social and governance (ESG) principles across its operations.
According to Euromoney, UBA distinguished itself through a series of sustainability initiatives, including the introduction of a Green Financing Facility designed to support households and businesses transitioning to renewable energy.
The publication also cited the bank’s ₦5 billion financing programme, implemented in partnership with the Bank of Industry (BOI), to provide funding for women-owned businesses.
Euromoney further recognised UBA’s commitment to achieving net-zero carbon emissions by 2050, describing it as a demonstration of the bank’s long-term sustainability strategy.
The publication also highlighted the bank’s efforts to integrate sustainability into its operations through the deployment of solar-powered energy solutions across 50 branches and comprehensive ESG capacity-building programmes that have trained more than 16,000 employees across the UBA Group.
In the retail banking category, Euromoney noted that UBA continued to consolidate its position as one of Africa’s largest retail banking institutions.
According to the publication, the bank expanded its customer base to more than 37 million by the end of 2025, while retail banking revenue increased more than fourfold to ₦429.5 billion.
The awards also recognised UBA’s continued investment in digital banking innovation, particularly enhancements to its artificial intelligence-powered chatbot, LEO.
Euromoney noted that LEO became Africa’s first AI-powered banking platform to facilitate cross-border money transfers in local currencies through the Pan-African Payment and Settlement System (PAPSS).
Commenting on the awards, UBA’s Group Managing Director and Chief Executive Officer, Mr Oliver Alawuba, described the recognition as a validation of the bank’s commitment to delivering value to customers while promoting sustainable development across Africa.
“To be recognised as Nigeria’s Best Bank for both ESG and Retail Banking in the same year sends a powerful message that sustainable banking and commercial success are mutually reinforcing.
“At UBA, we are committed to financing Africa’s future, supporting businesses and communities, promoting financial inclusion, and delivering innovative banking solutions that improve lives.
“These awards belong to our customers for their confidence in us and to every member of the UBA family whose dedication continues to make our vision a reality,” he said.
Also speaking, UBA’s Group Head, Marketing, Brand and Corporate Communications, Mrs Alero Ladipo, said the awards reflected the bank’s unwavering commitment to putting customers at the centre of its operations.
According to her, every innovation, investment and banking solution introduced by UBA is aimed at creating exceptional value for customers while expanding access to financial services.
“These awards are a powerful affirmation of our Customer First philosophy.
“Whether it is supporting entrepreneurs with access to finance, enabling seamless digital payments, advancing clean energy financing or expanding financial inclusion across Africa, UBA remains focused on delivering meaningful impact.
“We are honoured that one of the world’s most respected financial publications has recognised these efforts,” she said.
UBA currently operates in 20 African countries, as well as the United Kingdom, United States, France and the United Arab Emirates, serving more than 45 million customers through a combination of digital banking platforms and physical branch networks.
The bank said it remains committed to strengthening financial inclusion, driving innovation and supporting sustainable economic development across Africa and beyond.
HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria
Anambra Govt Bans Graduation Ceremonies in Anambra Schools
Airtel Secures Another 10-year Spectrum Renewal in Nigeria
Moniepoint as a Key Driver in Expanding Financial Access for Businesses in Nigeria
Nigeria, Israel Strengthen Research, Technology Collaboration
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
NASENI Moves to Digitize CCB’s 5m Assets Declaration and Operations
Tokenization, Blockchain Technology will Transform Financial Institutions – IMF
EFCC Busts NIS Visa Overstay Racket, Uncovers N700m in an Account
From Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
E-Financial3 days agoFG Says Rumours, Fear, Can Crash Banks
Telecom3 days agoCourt Dismisses Pan African Towers’ Bid to Halt Ex-CEO’s Suit, Awards ₦500,000 Costs
E-Business3 days agoKaspersky Warns of a Phishing Campaign Abusing Microsoft Authentication Mechanism
Telecom3 days agoTelcos Seek Clear Regulatory Framework on Airtime Credit Services
Telecom3 days agoMTN Nigeria Announces 2026 mPulse Spelling Bee, Opens Entries for Students Nationwide
News3 days agoIMF Sees 4% AI Growth Boost for Africa
Telecom3 days agoMTN Warns Customers against Fake Promo
E-Financial3 days agoEU Debunks Fake Compensation Scheme Targeting West African Bank Customers