The Federal Government (FG) has borrowed N17.36 trillion from domestic and foreign sources in the first ten months of 2025. This is 55.6 percent more than the N10.9 trillion target in the 2025 budget. Analysts warn that total borrowing could reach N23 trillion by the end of the year, almost 80 percent above the limit (DMO, CBN).
Of this, N15.8 trillion came from domestic sources, while N1.56 trillion was borrowed from foreign sources in the first half of the year. Last week, the FG announced plans to raise $2.35 billion (N3.384 trillion) through a Eurobond, which could push total borrowing to N20.74 trillion.
Experts say the rise in borrowing is due to weak revenue, high debt costs, and poor control of spending. Andrew Uviase, Managing Partner at Ecovis OUC, said, “The rising borrowing shows poor spending control. Non-oil revenue is still low, and without discipline, borrowing will keep growing.”
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David Adonri, Vice Executive Chairman of Highcap Securities, added, “The government’s heavy borrowing raises costs and leaves less money for businesses. Overly optimistic oil revenue targets have made the problem worse.”
The DMO says the FG borrowed N11.43 trillion through Treasury Bills, N4.042 trillion via FGN Bonds, N40.19 billion from FGN Savings Bonds, and N300 billion from Sukuk Bonds from January to October.
Clifford Egbomeade, a public analyst, warned that high interest rates and yields on government debt are taking money away from productive sectors, which could slow growth.
Analysts also say the borrowing goes against the Medium-Term Fiscal Framework (2025–2027) and IMF warnings. Nigeria’s debt-service-to-revenue ratio was already 83 percent in 2024.
Experts are calling on the government to cut wasteful spending, improve non-oil revenue, and borrow more from long-term, low-interest sources. This is needed to protect businesses and make debt sustainable.