According to data from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN), the total borrowing of ₦17.36 trillion represents an excess of ₦6.06 trillion above the ₦10.9 trillion limit stipulated in the 2025 Appropriation Act on a ten-month prorated basis. The total borrowing provision for the entire fiscal year stands at ₦13.08 trillion.
Breakdown of the borrowing shows that ₦15.8 trillion came from domestic sources as of October 2025, while ₦1.56 trillion was sourced externally in the first half of the year.
The Federal Government also initiated moves to raise an additional $2.35 billion (₦3.38 trillion) through Eurobond issuance, which could push the year’s total borrowing to about ₦20.74 trillion. Analysts project that total borrowings for the year could reach nearly ₦23 trillion, implying an overshoot of roughly ₦10 trillion—or 80 percent—above the budgeted target.
Experts have expressed concerns that the persistent borrowing overshoot amid weak revenue performance could entrench Nigeria in a debt trap, erode investor confidence, and limit private sector access to credit.
The 2025 budget projects ₦54.99 trillion in expenditure and ₦41.91 trillion in revenue, creating a deficit of ₦13.08 trillion to be financed through borrowing. However, the FG’s reliance on debt instruments such as FGN Bonds, Treasury Bills, Sukuk, and Savings Bonds has already outpaced its plans.
Financial analysts, including Andrew Uviase of Ecovis OUC and David Adonri of Highcap Securities, have blamed the surge on fiscal indiscipline and unrealistic revenue projections. Uviase described the situation as “a clear reflection of fiscal indiscipline and poor expenditure control,” while Adonri warned that “the government’s addiction to debt continues to undermine fiscal consolidation.”
They cautioned that continued overspending and borrowing could crowd out private credit, increase interest rates, and worsen inflation.
Other experts, including Tunde Abidoye of FBNQuest Merchant Bank and public analyst Clifford Egbomeade, stressed that Nigeria’s borrowing trend contradicts the IMF-backed fiscal consolidation framework aimed at reducing deficits and improving debt sustainability.
They urged the Federal Government to intensify non-oil revenue mobilisation, cut wasteful spending, and rebalance borrowing towards longer-term, concessional external loans.
