Nigeria’s Federal Government (FG) has borrowed a total of ₦17.36 trillion from domestic and foreign sources in the first ten months of 2025, marking a 55.6 per cent overshoot of its prorated borrowing limit. 

The borrowing cap outlined in the 2025 Appropriation Act was set at ₦13.08 trillion for the full year, with the prorated ten‑month target at about ₦10.9 trillion.  Latest figures show that domestic borrowing accounted for ₦15.8 trillion by October, while external borrowing stood at around ₦1.56 trillion as of mid‑year. 

Analysts caution that the government’s borrowing strategy will push total borrowing for the year toward ₦23 trillion, meaning the overshoot could reach about ₦10 trillion, equivalent to nearly 80 per cent above the approved ceiling. 

What Is Driving the Borrowing and What It Means

Among the key drivers of this borrowing stretch are revenue shortfalls, especially in non‑oil sectors, and rising cost of governance. Analysts say the budget’s assumptions including crude oil production of 2.06 million barrels per day and oil price at USD 75 per barrel have not held up in the current global and local climate. 

Financial experts note that as government borrowing increases, private sector access to credit may suffer, interest rates could rise and investment may be crowded out. This, they warn, poses risks to both growth and debt sustainability. 

While government spending is expanding and governance costs remain high, revenue remains insufficient to keep pace. The result is heavier reliance on borrowing, both internally and externally, to fill a widening fiscal gap.