Nigeria’s public finances are coming under increasing strain as debt servicing continues to consume the bulk of government revenue, leaving little room for investment in infrastructure and social services.

New data from the Federal Government shows that in the first seven months of 2025, Abuja spent almost three-quarters of its income paying creditors, a trend that underscores how deeply debt obligations are shaping fiscal outcomes.

The situation is becoming even more troubling when set against the scale of the country’s revenue weakness, with new budget data showing that the government is not only struggling to fund development but is increasingly borrowing just to meet existing debt obligations.

Figures from the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper reveal that in the first seven months of 2025, the Federal Government generated N13.67 trillion in revenue, yet spent N9.81 trillion servicing domestic and foreign debt. That meant nearly 72% of all income was swallowed by debt service. When personnel costs of N4.51 trillion are added, spending on wages and debt alone rose to N14.32 trillion, exceeding total revenue for the period.

This imbalance is unfolding against the backdrop of a far deeper revenue crisis. The Federal Government’s 2025 budget was anchored on spending of about N40 trillion, but Finance Minister Wale Edun told members of the House of Representatives Committees on Finance and National Planning earlier this week that the federal government is on course to close 2025 with total revenue of about N10.7 trillion — barely a quarter of the N40.8 trillion projected. That leaves a yawning gap of roughly N30 trillion, highlighting the scale of the fiscal hole confronting the administration.

The implication is twofold. First, the government has been unable to implement large portions of the 2025 budget because expected revenues have failed to materialize. Second, and more worrying, borrowing has increasingly been used not to fund new infrastructure or growth-enhancing projects, but to service existing debt and keep basic government operations running.

Oil revenue remains the weakest link. Between January and July 2025, oil earnings stood at N4.64 trillion, far below the pro rata target of N12.25 trillion. The resulting shortfall of over N7.6 trillion underscores the vulnerability of public finances to crude production challenges, oil theft, and price volatility. Dividends from key entities such as Nigeria Liquefied Natural Gas and development finance institutions also fell sharply short of expectations, further tightening revenue inflows.

While some non-oil taxes showed modest resilience, they were nowhere near sufficient to plug the gap. Company Income Tax slightly exceeded its target, and Value Added Tax performed better than projected, but customs revenue, Federation Account levies, and oil-related inflows all posted steep declines. Overall, aggregate revenue of N13.67 trillion was more than N10 trillion below the pro rata target for the first seven months of the year.

On the expenditure side, debt servicing overshot budget estimates, reaching N9.81 trillion compared with a pro rata target of N8.35 trillion. Foreign debt service, in particular, exceeded projections by nearly 29%, reflecting higher external obligations and exchange rate pressures. This overshoot came even as non-debt recurrent spending and capital expenditure were sharply curtailed.

Capital spending suffered the most. Only N3.60 trillion was spent on capital projects against a pro rata budget of N13.67 trillion, a shortfall of almost 74%. Releases to ministries, departments, and agencies were especially weak, limiting progress on infrastructure, health, education, and other critical sectors. The Budget Office partly attributed this to the extension of the 2024 budget, but the broader issue remains the lack of cash to fund capital votes.

The picture that emerges is of a government boxed in by deficient revenue, rising debt service costs, and shrinking fiscal space. With only a fraction of its N40 trillion budget funded, Abuja has been forced to prioritize debt repayment and salaries over development spending, even as borrowing continues to rise.

In 2024, debt service already consumed 77.5% of the federal government’s revenue. The 2025 figures suggest the situation has not improved. Instead, Nigeria appears caught in a cycle where weak revenues limit budget implementation, borrowing fills the gap, and an increasing share of income is then used to service the resulting debt. Without a significant turnaround in revenue generation, the data points to growing constraints on growth, investment, and the government’s ability to deliver on its policy promises.

Oracle shares extended gains after news that the company will play a central role in a new investor-led structure set to take over TikTok’s U.S. operations, a deal that analysts say could become a significant boost for the cloud provider’s long-term growth and market positioning.

The stock jumped about 5% on Friday following confirmation that Oracle will serve as one of three managing investors — alongside Silver Lake and Abu Dhabi-based MGX — in TikTok USDS Joint Venture LLC, the entity that will oversee TikTok’s U.S. business. The transaction is expected to close on Jan. 22, according to a memo sent to employees by TikTok CEO Shou Zi Chew.

Beyond the immediate share price reaction, investors are increasingly viewing the deal as strategically important for Oracle at a time when the company has been under pressure over its cloud and artificial intelligence spending plans. Under the agreement, Oracle will be responsible for auditing and validating TikTok’s compliance with U.S. national security requirements and will host sensitive U.S. user data in its cloud infrastructure. That role effectively embeds Oracle deep within TikTok’s U.S. operations, creating what analysts describe as a sticky, long-duration cloud workload tied to one of the world’s most influential consumer platforms.

This is not simply an equity investment for Oracle. The deal positions the company as the technological backbone and compliance gatekeeper for TikTok in the United States, a role that could translate into substantial and recurring cloud revenue, stronger credibility with regulators, and an expanded footprint in large-scale data hosting and AI-driven content platforms. In an environment where cloud providers are competing aggressively for hyperscale clients, TikTok represents both scale and visibility.

The timing also matters. Oracle’s shares had come under sustained pressure in recent weeks, falling more than 20% over the past month, after reports that talks over a roughly $10 billion data center deal with Blue Owl Capital had stalled. That development heightened investor concerns about the cost, execution risk, and balance-sheet strain associated with the massive infrastructure buildout required to support AI workloads. Although Oracle shares remain up about 8% for the year, sentiment has turned fragile.

The TikTok agreement has helped shift that narrative. Investors see the deal as evidence that Oracle can secure marquee partnerships that justify its heavy investments in cloud infrastructure, while also differentiating itself from rivals through its ability to meet stringent government and security requirements.

The transaction also brings an end to TikTok’s long-running regulatory standoff in the United States. The app had been facing a potential ban after President Joe Biden signed legislation requiring ByteDance to divest TikTok’s U.S. operations over national security concerns. President Donald Trump later extended the deadline multiple times and signed an executive order in September approving a framework for a deal that would allow the platform to continue operating under new ownership and oversight.

Under the new structure, ByteDance will retain a minority stake, while Oracle, Silver Lake, and MGX will collectively own a controlling interest. Chew said the agreement includes retraining TikTok’s recommendation algorithm using U.S. user data, tighter controls over content moderation within the United States, and Oracle’s oversight of data security and compliance with agreed national security terms.

China has not publicly confirmed the deal, though Chinese state media reports suggest it is expected to proceed. According to CNBC, state-run outlets quoted a pro-Beijing academic who said the arrangement aligns with Chinese law and stressed that it does not amount to a sale of TikTok’s core algorithm — a sensitive issue in earlier negotiations.

However, the market focus is squarely on upside potential for Oracle. The company stands to deepen its cloud relevance, strengthen its ties with U.S. policymakers, and secure a high-profile validation of its infrastructure at a time when investors are demanding clearer returns from AI and cloud spending. That combination explains why Wall Street greeted the news as more than just a headline — and why the deal is increasingly seen as a meaningful tailwind for Oracle’s business.

The long-running uncertainty hanging over TikTok’s future in the United States has finally lifted, with the sale of its U.S. operations now formally sealed and a takeover date set for Jan. 22, 2026.

A consortium of American and allied investors will assume control of the video-sharing platform’s U.S. business, bringing an end to years of political pressure, regulatory threats, and negotiations that once put the app on the brink of an outright ban.

Under the agreement, TikTok’s U.S. operations will be housed in a new entity, TikTok USDS Joint Venture LLC. Ownership of the venture is carefully structured to address U.S. national security concerns while keeping ByteDance, TikTok’s Chinese parent, financially involved. Three managing investors—Oracle Corporation, private equity firm Silver Lake, and Abu Dhabi state investment firm MGX—will collectively hold 45% of the new company. Another 5% will be owned by additional new investors whose identities have not been fully disclosed. Affiliates of existing ByteDance investors will hold 30.1%, while ByteDance itself will retain a 19.9% stake.

The ownership split underscores the political balancing act behind the deal. U.S. authorities had insisted on meaningful American control of TikTok’s operations, particularly its data and content systems, while ByteDance pushed to remain an economic participant in one of its most valuable markets.

TikTok chief executive Shou Chew confirmed that the transaction has been officially signed in a memo to staff on Thursday, a copy of which was viewed by The Hollywood Reporter. Chew struck a reassuring tone, emphasizing continuity for employees and users despite the change in ownership.

“I want to take this opportunity to thank you for your continued dedication and tireless work,” Chew wrote. “Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world. With these agreements in place, our focus must stay where it’s always been—firmly on delivering for our users, creators, businesses and the global TikTok community.”

President Donald Trump signed an executive order in September formally sealing the TikTok deal, though few concrete details were made public at the time. Trump had earlier floated the possibility that the Murdoch family, through Fox Corp., could join the ownership group. It remains unclear whether Fox or Murdoch-linked entities are among the unnamed investors taking up the remaining 5% stake.

The deal caps a turbulent chapter for TikTok in Washington. The app had faced legislation that would have effectively banned it from operating in the United States unless ByteDance divested. Trump intervened with executive orders that delayed enforcement of the ban, creating space for negotiations that ultimately led to the current agreement.

Beyond ownership, the structure of control and oversight appears designed to directly confront the concerns that drove the political backlash against TikTok in the first place. Chew said the agreement includes retraining TikTok’s content recommendation algorithm using U.S. user data, with the explicit aim of ensuring the feed is insulated from external influence.

Oracle will oversee data protection, reinforcing its role as the trusted custodian of U.S. user information, while the deal also grants ultimate decision-making authority over content moderation and related policies within the United States to the U.S.-based entity.

Those provisions are likely to be closely scrutinized by lawmakers and regulators who have long argued that TikTok’s algorithm and data practices posed national security risks.

The investor lineup also highlights the deepening ties between technology, media, and global capital. Oracle and Silver Lake bring significant experience in both enterprise technology and entertainment. Oracle founder Larry Ellison has become an increasingly influential figure in Hollywood, backing his son David Ellison’s bid to acquire Paramount and playing a role in efforts to secure Warner Bros. Discovery, with Oracle’s financial firepower underpinning those ambitions.

Silver Lake, meanwhile, is already a major force across media and sports. It owns talent agency WME, controls TKO Group Holdings, and in September partnered with Saudi Arabia’s Public Investment Fund in the acquisition of video game publisher Electronic Arts, further cementing its influence in digital entertainment.

The deal secures continued access to TikTok’s most lucrative advertising market at a time when competition with Meta’s Instagram Reels and Google’s YouTube Shorts remains fierce. It also delivers a politically defensible outcome that avoids banning a platform used by tens of millions of Americans while asserting U.S. oversight.

The Background of The Sale

TikTok’s troubles in the United States date back to its explosive growth. The short-form video app rapidly became one of the most influential social platforms in the country, reshaping online culture, advertising, music promotion, and political messaging. That success also drew scrutiny from U.S. lawmakers and security agencies, who argued that TikTok’s ownership by China-based ByteDance could expose sensitive user data or allow foreign influence over content consumed by millions of Americans.

Concerns intensified as geopolitical tensions between Washington and Beijing worsened. Lawmakers repeatedly questioned TikTok executives on Capitol Hill, pressing them on data storage, algorithmic control, and the potential for Chinese government access. TikTok responded by insisting that U.S. user data was not shared with Chinese authorities and by rolling out mitigation measures, including storing U.S. data on servers overseen by Oracle.

Those steps, however, failed to fully calm political anxiety.

The pressure peaked with a 2024 legislation that would have effectively banned TikTok in the United States unless ByteDance divested control of its U.S. business. The prospect of a ban threatened to wipe out a platform used by tens of millions of Americans, disrupt a massive creator economy, and hand an advantage to rivals such as Meta Platforms’ Instagram and Google’s YouTube.

President Donald Trump emerged as a central figure in the final phase of the standoff. While he had sought to ban the app through executive order during his first term, Trump ultimately opted for a negotiated outcome rather than an abrupt shutdown this time. He signed executive orders postponing the enforcement of the ban, giving TikTok time to reach an agreement that would satisfy U.S. security demands while preserving the app’s operations.

Those negotiations culminated in the deal announced this week.