The Federal Government of Nigeria has exceeded its 2025 borrowing target by 55.6%, with a total of N17.36 trillion borrowed from domestic and foreign sources in the first 10 months of the year. This is N6.06 trillion more than the N10.9 trillion stipulated in the 2025 Appropriation Act for the period.
Breakdown of Borrowings:
– Domestic Borrowing: N15.8 trillion as of October 2025
– External Borrowing: N1.56 trillion as of the first half of 2025
The government plans to borrow an additional $2.35 billion (approximately N3.384 trillion) through a Eurobond issuance, which would push total borrowing to N20.74 trillion. Analysts estimate that total borrowing for the year could reach N23 trillion, nearly 80% above the approved limit.
Experts warn that this excessive borrowing could lead to a debt trap, crowd out private sector credit, and undermine fiscal consolidation efforts.
