The Federal Government plans to borrow ₦8.54 trillion by 2025, which is also less than the ₦10.62 trillion targeted for the same year in the previous MTEF/FSP.
A breakdown for 2025 showed that the Federal Government plans to get ₦6.42 trillion from domestic lenders and ₦2.12 trillion from foreign creditors.
The Federal Government plans to borrow ₦10.07 trillion by 2026, which consists of ₦8.94 trillion domestic loan and ₦1.13 trillion external debt.
This could also be as a result of the credit status of the Federal Government which has a huge debt profile.
As a result, the Federal Government is reducing its appetite for foreign loan to focus more on borrowing from domestic lenders.
Increase In Public Debt
The country had borrowed about ₦5.05 trillion between January and June from its ₦9.62 trillion borrowing plan for 2023, which means that the Federal Government will likely still borrow at least ₦4.57 trillion more this year.
The Debt Management Office recently said Nigeria’s total public debt hit ₦87.38 trillion at the end of the second quarter.
The figure represents an increase of 75.29% or ₦37.53 trillion compared to ₦49.85 trillion recorded at the end of March 2023.
Basically, the increase was primarily due to the ₦22.7 trillion Ways and Means Advances of the Central Bank of Nigeria to the Federal Government and the Naira devaluation that added about ₦13.38tn to the external debt figure.
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With an ₦87.38 trillion debt as of June 2023, the likelihood of ₦4.57 trillion new debt before the end of this year, and a plan to borrow ₦26.42 trillion in three years, Nigeria’s total public debt is expected to hit and even exceed (due to subnational borrowing) ₦118.37 trillion by the end of 2026.
Despite the rising debt, the Federal Government has insisted that it will stick to its borrowing plan.
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