The Federal Government has borrowed N17.36 trillion in the first ten months of 2025, overshooting its prorated budget target by a staggering 55.6%. This aggressive borrowing, driven by revenue shortfalls and high spending, has sparked grave warnings from financial analysts about a looming debt trap and its suffocating effect on the economy.
Key Points:
Total borrowing of N17.36 trillion from Jan-Oct 2025 far exceeds the N10.9 trillion prorated target.
Domestic borrowing accounted for N15.8 trillion, primarily through Treasury Bills and Bonds.
A planned $2.35 billion Eurobond issuance could push the year’s total borrowing past N23 trillion.
Financial experts blame “fiscal indiscipline,” unrealistic oil revenue assumptions, and weak non-oil revenue.
The borrowing surge is crowding out the private sector, raising interest rates, and stifling business growth.
Analysts warn this undermines IMF-backed fiscal consolidation and threatens long-term debt sustainability.
The government’s debt-service-to-revenue ratio, estimated at 83% in 2024, is deemed unsustainable.
Sources: Vanguard, Debt Management Office (DMO)