The Federal Government has already borrowed ₦17.36 trillion between January and October 2025, surpassing its prorated borrowing ceiling for the period by ₦6.06 trillion, or 55.6%, according to data compiled from official sources.
The 2025 Appropriation Act authorised a full-year borrowing limit of ₦13.08 trillion to cover a projected budget deficit of the same amount. On a straight-line basis, the government was expected to borrow no more than ₦10.9 trillion in the first ten months. Instead, domestic borrowing alone reached ₦15.8 trillion by the end of October, while external borrowing stood at ₦1.56 trillion for the first half of the year.
Last week, the Debt Management Office (DMO) launched a $2.35 billion (approximately ₦3.384 trillion) Eurobond issuance, which, if fully subscribed, will push total borrowing for the year to at least ₦20.74 trillion. Analysts tracking the government’s monthly domestic debt auctions estimate that, at the current pace, full-year borrowing could approach ₦23 trillion——nearly 80% above the amount approved by the National Assembly.
The 2025 budget had projected total expenditure of ₦54.99 trillion against revenue of ₦41.91 trillion, leaving the ₦13.08 trillion deficit to be financed through new debt. The sharp deviation from this plan has intensified concerns among economists.
“This level of fiscal slippage, combined with persistently weak revenue collection, is pushing the country toward a classic debt spiral,” said Dr. Ayo Teriba, CEO of Economic Associates. “Higher borrowing costs are crowding out private-sector credit, stifling investment, and ultimately threatening job creation and household purchasing power.”
Other experts echoed the warning, pointing to the risk of further currency depreciation and higher inflation as debt-service obligations consume an ever-larger share of federal revenue. They called on the government to slash non-essential spending, strengthen tax administration, and enforce stricter budgetary discipline.
The development comes amid growing scrutiny of Nigeria’s public finances, with the country already ranked among the world’s most indebted emerging markets when measured against GDP. Lawmakers and civil-society groups have demanded greater transparency on how the extra borrowed funds are being utilised.
As the year-end approaches, all eyes are on whether the administration will seek supplementary appropriation or simply present the National Assembly with a fait accompli when the 2026 budget is tabled early next year.
