The Federal Government of Nigeria (FG) borrowed trillion from domestic and foreign sources within the first ten months of this year, a figure that exceeds the budgeted amount for the period. This borrowing represents trillion, or 55.6 per cent, in excess of the trillion stipulated in the 2025 Appropriation Act, based on a ten-month prorated calculation. The total approved borrowing for the entire 2025 fiscal year was trillion.
A breakdown of the 2025 borrowings shows that trillion was sourced from domestic markets as of October 2025, with trillion coming from external sources as of the first half of 2025.
The total projected borrowing for the year is expected to rise further. The FG last week initiated moves to borrow an additional $2.35 billion ( trillion) via a Eurobond issuance. This issuance, as reported by the Debt Management Office (DMO), would increase the total borrowing for the ten-month period to trillion. Furthermore, projections based on the periodic domestic borrowing template for the year put the estimated total borrowing for 2025 at nearly trillion, resulting in an estimated total excess borrowing of about trillion, or 80 per cent above the amount authorised in the Appropriation Act 2025.
The trillion expenditure projected in the Appropriation Act 2025, against an estimated revenue of trillion, resulted in an approved deficit of trillion to be financed through both domestic and external borrowing. Financial analysts warn that this persistent overshooting of the borrowing limit, coupled with weak revenue performance, raises the risk of a self-reinforcing debt trap, erodes foreign investor confidence, and threatens private sector access to credit, with potential knock-on effects on the cost of living and job creation.
