By Abiola Olawale
The Federal Government of Nigeria (FG) has overshot its initial 2025 borrowing projections, exceeding the target by 55.6%.
This sudden surge in national debt has triggered widespread alarm among economic experts, lawmakers, and civil society, raising questions about fiscal sustainability and the nation’s burgeoning debt-servicing burden.
The New Diplomat reports that original projections within the Medium-Term Expenditure Framework (MTEF) set a clear borrowing path for the 2025 fiscal year.
However, recent requests for additional loans, both domestic and external, have altered this trajectory.
The Federal Government has now borrowed N17.36 trillion from domestic and foreign sources in the first 10 months of this year.
The borrowings represent N6.06 trillion (55.6 per cent) in excess of the N10.9 trillion stipulated in the 2025 Appropriation Act on 10 10-month prorate basis. The total borrowing in the 2025 approved budget is N13.08 trillion for the entire fiscal year.
The breakdown of the 2025 borrowings so far shows N15.8 trillion from domestic sources as at October 2025 and N1.56 trillion from external sources as at the first half of 2025.
Meanwhile, the FG last week initiated moves to borrow $2.35 billion (N3.384 trillion) via the Eurobond issuance.
This would increase the total borrowing to N20.74 trillion.
Reacting to the situation, Andrew Uviase, Managing Partner at Ecovis OUC, described the escalating borrowing as “a clear reflection of fiscal indiscipline and poor expenditure control.”
Uviase continued: “The government still needs to do a lot more in reducing and controlling the cost of governance. The present situation suggests the government is not bothered about its spending pattern, and without honesty and transparency, we will continue to see excessive borrowing because, realistically, money is never enough.
“Other non-oil sources are not meeting expectations, and insecurity continues to stifle farming and other economic activities that could boost revenue.”
In his opinion, David Adonri, Vice Executive Chairman of Highcap Securities, blamed the borrowing surge on “aggressive and unrealistic revenue assumptions,” particularly oil-related.
“The 2025 budget was anchored on an oil production target of 2.06 million barrels per day and a price of $75 per barrel — both overly optimistic,” he said. “Actual production has hovered around 1.6 to 1.7 million barrels, while prices have fallen to about $65.”
Adonri warned that the Federal Government’s “addiction to debt” and “brazen fiscal indiscipline” continue to undermine fiscal consolidation. “Despite claims of increased revenue from the removal of fuel and FX subsidies, government spending keeps expanding, and borrowing has become a narcotic,” he added.
