The Federal Government increased its domestic borrowing by N8.1 trillion in the first quarter of 2026, representing a 7.4 per cent rise from N7.5 trillion recorded in the same period of 2025.
Analysts attribute the increase to persistent revenue shortfalls and fiscal indiscipline, urging authorities to cut waste, improve revenue collection, and strengthen financial accountability.
Data from the Central Bank of Nigeria and the Debt Management Office shows that the rise was driven mainly by increased borrowing through FGN Bonds and Savings Bonds, despite a decline in Treasury Bills.
Meanwhile, the World Bank has warned that Nigeria’s growing debt service burden is limiting its ability to fund critical infrastructure, with capital spending declining from 1.3 per cent of GDP in 2024 to 1.0 per cent in 2025.
Experts say the country risks entering a debt cycle if borrowing continues to outpace revenue growth, stressing the need for disciplined fiscal policies and strategic investment in productive sectors.
They also noted that while borrowing can support development, it must be carefully managed to avoid crowding out private sector investment and worsening economic pressures.
