The Federal Government (FG) has borrowed a total of N17.36 trillion from domestic and foreign sources in the first ten months of 2025, exceeding the N10.9 trillion target set in the 2025 Appropriation Act by 55.6%.
The approved borrowing ceiling for the entire fiscal year stands at N13.08 trillion, meaning the government has already surpassed its annual target. Domestic borrowing accounted for N15.8 trillion, while external borrowing reached N1.56 trillion in the first half of the year.
In addition, the FG recently initiated a $2.35 billion (N3.384 trillion) Eurobond issuance, which could push total borrowing to N20.74 trillion, with estimates suggesting a potential year-end borrowing of nearly N23 trillion, about N10 trillion above the original target.
Analysts warn that this persistent overshoot, coupled with weak revenue performance, could deepen Nigeria’s debt challenges, reduce private sector access to credit, and impact business growth, job creation, and the cost of living. The 2025 budget projected expenditures of N54.99 trillion against revenue of N41.91 trillion, leaving a deficit of N13.08 trillion to be financed through borrowing.
Data from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) show that domestic borrowing through Treasury Bills reached N11.43 trillion, a 4.6% increase year-on-year while FGN Bonds fell 22% to N4.042 trillion. Borrowing via FGN Savings Bonds rose 5.6% to N40.19 billion, and Sukuk Bond issuance surged to N300 billion from zero the previous year.
Experts caution that this trend reflects ongoing fiscal indiscipline, threatens debt sustainability, undermines IMF-backed consolidation efforts, and could erode investor confidence.
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