The Federal Government (FG) has borrowed N17.36 trillion from domestic and foreign sources in the first 10 months of this year.
This represents N6.06 trillion (55.6 per cent) in excess of the N10.9 trillion stipulated in the 2025 Appropriation Act on 10 months prorate bases. The total borrowing in 2025 approved budget is N13.08 trillion for the entire fiscal year.
The breakdown of the 2025 borrowings so far shows a N15.8 trillion from domestic sources as at October 2025 and N1.56 trillion from the external sources as at first half of 2025.
Meanwhile, the FG last week initiated moves to borrow $2.35 billion (N3.384 trillion) via the Eurobond issuance.
This would increase the total borrowing to N20.74 trillion.
Also, going by the periodic domestic borrowing template operated this year, the estimated total borrowing for the year is put at nearly N23 trillion, bringing total excess borrowing for the year to about N10 trillion, or 80% in excess of the amount in the Appropriation Act 2025.
Financial analysts warn that this persistent overshoot, amid weak revenue performance, heightens the risk of a self-reinforcing debt trap, erodes foreign investor confidence, and threatens private sector access to credit — with knock-on effects on business expansion, job creation, and the general cost of living.
FG, in the Appropriation Act 2025, projected N54.99 trillion xpenditure and N41.91 revenue. This resulted in a deficit of N13.08 trillion, which is to be financed through domestic and external borrowing.
Based on this, the borrowing target for the first ten months was N10.9 trillion, equivalent to N1.09 trillion monthly.
However, data from the Debt Management office, DMO, and the Central Bank of Nigeria, CBN, showed that the FG borrowed N15.8 trillion from domestic investors from January to October (10M’25) through monthly FGN Bond auctions, FGN Savings Bonds, Sukuk Bond and Treasury Bills.
Financial analysts pointed out that by overshooting its borrowing target amidst rising revenue, the FG is continuing with fiscal indiscipline which hallmarked the immediate past fiscal regime under late president Mohammadu Buhari.
They also said this development poses threat to private sector access to credit and economic growth and debt sustainability efforts.
The experts also warned that FG’s excessive borrowing undermines IMF-backed fiscal consolidation efforts.
