FG Domestic Borrowing Surges 90% to ₦24.7 Trillion in Eight Months

Nigeria’s Federal Government has dramatically increased its reliance on domestic borrowing, raising ₦24.7 trillion from local investors in the first eight months of 2026 — a staggering 90.5% increase compared with the same period last year. The figure, reported from government public-finance data, represents a sharp jump from the ₦12.98 trillion borrowed between January and August 2025. The development is already raising concerns over the availability and cost of credit for businesses and households. Data cited from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) show that credit to the government has been growing much faster than credit to the private sector. By July 2026, credit to government had risen 43% year-on-year to ₦33.92 trillion, while private-sector credit increased by only 9.6% to ₦83.43 trillion. That disparity has fuelled concerns about a possible crowding-out effect, where government borrowing absorbs funds that could otherwise be available to businesses seeking loans for expansion, investment and job creation. Asignificant portion of the borrowing surge has come through government debt instruments. According to the reported data, borrowing through FGN bonds increased by 145% year-on-year to ₦7.78 trillion, compared with ₦3.18 trillion during the corresponding period of 2025. Borrowing through Nigerian Treasury Bills (NTBs) also rose sharply, increasing by 78.6% to ₦16.92 trillion, from ₦9.47 trillion a year earlier. FGGN Savings Bonds contributed another ₦40.56 billion during the eight-month period. The numbers are particularly significant when compared with the government’s annual target. The ₦24.7 trillion raised in the first eight months represents approximately 84.7% of the ₦29.2 trillion domestic borrowing target for the year. With four months still remaining, maintaining the same pace of borrowing could push the government beyond its planned domestic borrowing limit. For ordinary Nigerians, the concern goes beyond government debt figures. Heavy domestic borrowing can put pressure on interest rates and make it more expensive for businesses and individuals to obtain loans. Small businesses that need bank financing to expand, purchase equipment or employ more workers could find themselves competing with the government for available funds. Economists and analysts have therefore raised concerns that continued heavy domestic borrowing could weaken private-sector investment and make economic expansion more difficult. The latest figures come despite increased government revenues reported by several major agencies, including the tax and customs authorities and the Nigerian National Petroleum Company. This has intensified debate over why the Federal Government continues to rely so heavily on borrowing to finance its spending needs. The government faces significant expenditure commitments and debt-service obligations, making fiscal management increasingly important. For now, the ₦24.7 trillion figure is another major warning sign for Nigeria’s finances