Nigeria’s debt pressures intensified in early 2026 as the Federal Government increased its domestic borrowing to N8.1 trillion in the first quarter of 2026, according to data obtained from the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO). This represents a 7.4 per cent year-on-year increase compared with N7.5 trillion borrowed in the corresponding period of 2025.
The fresh figures, published at the weekend, highlight a growing reliance on domestic debt instruments such as FGN bonds, savings bonds and Treasury bills to plug the Federal Government’s widening fiscal gap. Analysts say the trend reflects persistent revenue shortfalls and rising expenditure obligations, heightening concerns over debt sustainability and the long‑term impact on economic growth.
Breakdown of the Q1 2026 borrowing shows that the increase was largely driven by higher subscriptions to FGN bonds and savings bonds, even as borrowing via Treasury bills declined year‑on‑year. In particular, borrowing through FGN bond auctions rose significantly compared to Q1 2025, while FGN savings bond issuance also recorded double‑digit growth over the same period.
The development comes against the backdrop of the 2026 Appropriation Act, under which the Federal Government plans to borrow N29.2 trillion during the year to finance part of its budget deficit. Total expenditure is projected at N68.32 trillion with expected revenue of N36.87 trillion, leaving a substantial financing gap that is to be met through a mix of domestic and external borrowing.
Fiscal authorities have repeatedly defended the borrowing strategy as necessary to sustain critical spending and ongoing economic reforms, including efforts to stabilise the macroeconomic environment and support private‑sector‑led growth. However, independent analysts and multilateral institutions have warned that rapid debt accumulation, coupled with elevated debt service costs, could constrain future budget flexibility and crowd out priority investments if not matched by stronger revenue mobilisation.
For readers in Benue and across the Middle Belt, the implications are tangible: federal borrowing decisions influence the cost of credit, the size and reliability of federal allocations to states, and the pace at which infrastructure and social projects are funded. As the second quarter of 2026 unfolds, stakeholders will be watching closely how the Federal Government balances its immediate financing needs with the imperative of long‑term debt sustainability.
