The Federal Government has exceeded its 2025 borrowing target by 55.6%, raising ₦17.36 trillion from domestic and foreign sources in the first ten months of the year — far above the ₦10.9 trillion planned for that period under the Appropriation Act.
Data from the Debt Management Office and the Central Bank show ₦15.8 trillion came from domestic investors and ₦1.56 trillion from external loans. With a planned $2.35 billion Eurobond in the works, total borrowing could reach ₦20.7 trillion, and projections suggest it may hit ₦23 trillion by year-end — about 80% above budget limits.
Experts warn the government’s rising debt appetite risks a “self-reinforcing debt trap,” crowding out private-sector borrowing and weakening investor confidence. High domestic borrowing has already pushed yields above 20%, discouraging banks from lending to businesses.
Analysts blamed the overshoot on “fiscal indiscipline,” weak revenue, and unrealistic oil assumptions in the 2025 budget. Oil output has averaged 1.6 million barrels per day, well below the 2.06 million target, while global prices fell to $65 per barrel.
Economists caution that persistent overspending and reliance on domestic debt could undermine Nigeria’s growth prospects, raise inflation, and derail IMF-advised fiscal consolidation plans.
