The Federal Government has borrowed a staggering ₦17.36 trillion within the first ten months of 2025, far exceeding the ₦10.9 trillion borrowing limit set in the Appropriation Act. Data from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) show ₦15.8 trillion sourced domestically and ₦1.56 trillion from external lenders.
Experts warn that this persistent overshoot, alongside weak revenue performance, could plunge Nigeria into a debt trap. The government’s total borrowing could hit ₦23 trillion by year-end—about 80% above the approved level—deepening fiscal indiscipline and limiting private sector access to credit.
Analysts blame unrealistic oil benchmarks, poor expenditure control, and weak non-oil revenue for the borrowing surge. They caution that Nigeria’s growing debt-service-to-revenue ratio—already estimated at 83%—threatens long-term growth, investor confidence, and economic stability.
To reverse this trend, financial experts urge the Federal Government to cut wasteful spending, broaden its non-oil tax base, and prioritize private-sector-driven growth. They also recommend aligning borrowing with realistic revenue targets to restore fiscal discipline and debt sustainability.
