Nigeria FG Exceeds 2025 Borrowing by 55.6%, Debt Levels Expected to Hit 80% by Year-End
Nigeria’s rising debt profile has once again come under scrutiny as the Federal Government exceeded its 2025 borrowing target by 55.6 percent, sparking concerns over worsening fiscal instability and mounting economic risks. A separate Weekend Trust investigation, titled “Where is the money?”, also questioned the federal government’s management of public funds, highlighting growing worries about transparency and accountability. A Disturbing Financial Trend According to analysts, the FG’s excessive borrowing did not come as a surprise, but the scale of the overrun has triggered alarm among economists and citizens alike. The situation has fueled debates on whether the benefits of subsidy removal and currency devaluation are being siphoned off by a privileged few or wasted on projects with little economic value. Long History of Fiscal Irresponsibility Nigeria’s leadership at both federal and state levels has long been criticised for short-term economic planning focused on election cycles rather than sustainable development. In a previously published analysis, alarming debt figures from the Debt Management Office (DMO) revealed the scale of the crisis: Nigeria’s public debt rose to ₦121.67 trillion as of March 31, 2024, up from ₦97.34 trillion in December 2023. This means the country added ₦24.33 trillion in just three months. The country’s growing addiction to borrowing has been compared to a drug dependency, with successive administrations relying on loans rather than revenue reforms or fiscal discipline. From Obasanjo to Buhari to Tinubu: The Debt Cycle Deepens Since Nigeria’s early debts under the Obasanjo military regime, successive governments have struggled to reduce borrowing. Even periods of high oil prices—such as 2010 to 2013—were marked by waste and expanded debt portfolios. By 2015, Nigeria’s children were already burdened with heavy debts. Under Buhari, future generations—grandchildren and great-grandchildren—were also drawn into the debt trap. Tinubu’s administration, critics argue, is accelerating the trend rather than reversing it. Eurobond Rush Raises More Questions Recently, Nigeria issued a $2.35bn Eurobond, which was oversubscribed by 400 percent. Government officials claimed the oversubscription reflected investor confidence, but analysts argue otherwise: The bonds carry high interest rates of 9.25% and 10.375%, nearly double what developed economies pay. Investors are reportedly attracted by unusually high returns—not trust in Nigeria’s economy. This means Nigeria will be repaying hefty interest for years, long after the current administration leaves office. Who Will Stop the Borrowing? Economists warn that governments rarely stop borrowing voluntarily. When debt becomes unsustainable, external bodies such as the IMF or the United States may be forced to intervene—often imposing harsh conditions. Argentina’s experience offers a cautionary tale: once lenders take control, national sovereignty becomes compromised. The Big Question: Where Is the Money? Despite record borrowing, increased taxes, and savings from subsidy removal, Nigerians say they feel no real impact in their daily lives. Public infrastructure remains weak, inflation remains high, and essential services are under enormous strain. This has left one burning question at the centre of national debate:Where exactly is the money going?
