The Bola Tinubu-led administration has borrowed N17.36 trillion from domestic and foreign sources in the first ten months of 2025, surpassing its prorated borrowing target by N6.06 trillion, or 55.6 per cent.
The approved borrowing limit for the first ten months was N10.9 trillion, based on the N13.08 trillion ceiling set in the 2025 Appropriation Act.
Data from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) show that domestic borrowings accounted for N15.8 trillion, while external borrowings totaled N1.56 trillion in the first half of the year.
The government has also initiated plans to raise an additional $2.35 billion (N3.384 trillion) through a Eurobond issuance, potentially pushing total borrowings for the year to nearly N20.74 trillion.
Financial analysts warn that the persistent overshooting of borrowing targets could push Nigeria into a self-reinforcing debt trap.
READ MORE: Amid Rising Debt, World Bank Sets December for Approval of Tinubu’s Fresh $1billion Loan Request
They noted that the rising debt threatens investor confidence, reduces private sector access to credit, and could worsen inflation, affecting business growth, job creation, and the cost of living.
The 2025 budget projected N54.99 trillion in expenditure against N41.91 trillion in revenue, leaving a N13.08 trillion deficit to be financed through controlled borrowing.
However, monthly borrowing far exceeded the planned N1.09 trillion, raising concerns about fiscal discipline and the sustainability of IMF-backed fiscal consolidation measures.
A breakdown of the borrowing shows Treasury Bills accounting for N11.43 trillion, up 4.6% from N10.93 trillion in 2024.
Borrowing through FGN Bonds fell 22% year-on-year to N4.04 trillion, while FGN Savings Bonds and Sukuk Bonds rose to N40.19 billion and N300 billion, respectively, reflecting the administration’s increasing reliance on multiple debt instruments to fund its fiscal operations.
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