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Businesses Feel Pressure as FG’s Domestic Borrowing Surges 90% to N24.7trn
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The Federal Government’s borrowing from domestic investors rose by 90.5 per cent year-on-year (YoY) to N24.7 trillion in the first eight months of 2026, compared with N12.98 trillion recorded in the corresponding period of 2025.
Findings by Financial Vanguard, based on public finance data from the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN), also showed that credit to the government grew more than four times faster than credit to the private sector during the period.
The sharp increase in domestic borrowing came despite a significant rise in government revenue reported by key agencies, including the Nigerian Revenue Service, Nigeria Customs Service and Nigerian National Petroleum Company Limited (NNPCL).
The government has also benefited from savings associated with the removal of petrol subsidies and increased naira proceeds following the floating of the exchange rate.
However, public finance analysts have raised concerns over extra-budgetary spending and other fiscal exposures, which they say may be contributing to the government’s growing financing needs and prompting increased borrowing from both domestic and external sources.
Govt credit grows 4.5 times faster than private-sector credit
The latest CBN money and credit data showed that credit to the government rose by 43 per cent YoY, from N23.69 trillion in July 2025 to N33.92 trillion in July 2026.
By contrast, credit to the private sector increased by only 9.6 per cent, from N76.13 trillion to N83.43 trillion over the same period.
This means credit to the government grew about 4.5 times faster than credit to the private sector.
The surge in Federal Government borrowing was driven largely by increased issuance of Federal Government of Nigeria (FGN) bonds, FGN savings bonds and Nigerian Treasury Bills (NTBs).
Borrowing through FGN bonds rose by 145 per cent YoY to N7.78 trillion in the first eight months of 2026, from N3.18 trillion in the corresponding period of 2025.
Similarly, borrowing through NTBs increased by 78.6 per cent to N16.92 trillion, from N9.47 trillion, while borrowing through FGN savings bonds rose by 22 per cent to N40.56 billion, from N33.18 billion.
Why FG is borrowing more
Experts who spoke to Financial Vanguard attributed the sharp increase to the government’s larger financing requirements amid a significant fiscal deficit, rising expenditure and higher debt-service obligations.
They, however, warned that increased reliance on the domestic market could crowd businesses and households out of available credit.
The Chief Executive Officer of MDU Capital Ltd, Ayodeji Ebo, said the increase reflected “larger financing requirements arising from high debt-service costs, recurrent expenditure, infrastructure and security needs, and a fiscal deficit that remains significant despite improved revenue.”
According to Ebo, the government may also be relying more heavily on the domestic market to reduce its exposure to foreign-exchange risks.
He, however, cautioned that not all NTB issuance should be regarded as fresh borrowing, noting that part of the issuance represents refinancing or rollover of maturing obligations.
Chief Economist, United Capital Plc, Ayodele Akinwunmi, identified infrastructure spending and the need to bridge fiscal deficits as major drivers of the increased borrowing.
He said the impact of the borrowing should also be assessed in relation to the infrastructure being financed.
“Across the country, we have witnessed significant growth in infrastructure development, ranging from physical projects, such as roads and railways, to soft infrastructure, including education, healthcare and security.
“These advancements have contributed positively to the ease of doing business, creating a more enabling environment for economic activity,” Akinwunmi said.
He noted that Nigeria’s infrastructure financing gap remained substantial, making it difficult for the government to rely solely on annual budgetary allocat
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2027: Wike rallies support for Tinubu In Akpor kingdom, Insists He’II resign as Minister should president lose FCT, Rivers(Photos)
The Minister of the Federal Capital Territory (FCT), Nyesom Wike, on Friday declared that his political alignment with President Bola Tinubu remains unshakable, rallying the political structure of Rivers State to consolidate support for the President.
”My interest in Rivers State is for God to use me as a vessel to help our people. I am back here not for what I will get, but for what I will be to raise my people”, Wike declared during a strategic consultative meeting with stakeholders of the Akpor Kingdom in Obio-Akpor Local Government, Rivers State, Wike emphasized that politics is driven by the collective interest of the people rather than perpetual animosity.
He also reiterated his decision to resign his position as Minister should President Tinubu lose in Rivers State and the FCT.
The former governor of Rivers State maintained that expanding the political base is essential for delivering democratic dividends.
He said; “there is no permanent enemy in politics what we have is permanent collective interest.
“It is all about the interest of our people. The more you are in number, the happier you become. Leadership is like a waste dustbin. If you cannot absorb things, both the good and the bad, then you cannot be a true leader.”
Reflecting on the political trajectory that led to his appointment as FCT Minister, Wike noted that working with President Tinubu was an extraordinary milestone that defied political convention.
He stressed that his return to grassroots mobilization in Rivers State is aimed at leveraging his position as a vessel to uplift the state and its people.
”You know how difficult, you know how impossible it looked, but he made it possible for us to produce the Minister of the Federal Capital Territory,” Wike told the gathering.
He charged political actors in the state not to be distracted by social media criticism regarding his open-door policy toward former detractors, asserting that true political strength lies in numerical superiority.
In a fiery charge to local leaders, Wike demanded an all-inclusive campaign structure spanning every stratum of society in Obio-Akpor Local Government Area.
He called on traditional rulers, clergy, and community leaders to unite behind a single political direction.
”Obio-Akpor as a whole, whether you are a politician, whether you are a traditional ruler, whether you are a pastor, or whether you are a native doctor, I need everybody now,” he declared.
Wike said further; “Because all of them will vote. For the purpose of voting and elections, we must bring everyone together. ”
Drawing from his political history as the first elected chairman in the history of Obio-Akpor Local Government to win a second term following its creation in 1989, Wike reminded incumbent council leaders that performance and human connection remain the ultimate yardsticks for re-election.
He stated; “I was not elected two times because I was just Chairman.
“I was elected because people felt the impact of governance and because I related with the people. Anywhere, whether for burial or thanksgiving, I was always identifying with them”.
Outlining the electoral roadmap, the FCT Minister highlighted Wards 15, 16, and 17 in Obio-Akpor Local Government as strategic strongholds capable of deciding electoral outcomes across the local council.
”We have over 200 units across three very important wards Ward 15, Ward 16, and Ward 17. These three wards can defeat ten wards in Obio-Akpor. They are three wards with a difference, and you must utilize them to make that difference,” he instructed.
Wike directed local leaders to immediately deploy unit coordinators and door-to-door canvassers across all polling units, urging them to mobilize their immediate families, in-laws, and neighbors to ensure a decisive victory.
Reiterating his loyalty to his constituency, Wike affirmed that he would remain the state’s “Chief Critic” and guide to ensure elected council officers stay accountable to the electorate.
Wike was accompanied by the Rivers State APC governorship candidate, Kingsley Chinda and other political leaders.
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Echoes of Wike ‘na our own ‘ song takes over at ongoing Akpor town hall meeting in Obio/Akpor LGA today (Video)
Echoes of Wike ‘na our own ‘song rent the air at ongoing Akpor town hall meeting at Obio/Akpor LGA in Rivers State today.
Watch clip below:
News
Watch moment, traditional rulers present kola to FCT minister Wike at ongoing town hall meeting in Akpor kingdom, Obio/Akpor LGA
A video clip showing traditional rulers presenting kola to FCT minister Nyesom Wike at Akpor in Obio/Akpor LGA in Rivers State has emerged.
Watch:
2027: Wike rallies support for Tinubu In Akpor kingdom, Insists He’II resign as Minister should president lose FCT, Rivers(Photos)
Echoes of Wike ‘na our own ‘ song takes over at ongoing Akpor town hall meeting in Obio/Akpor LGA today (Video)
Watch moment, traditional rulers present kola to FCT minister Wike at ongoing town hall meeting in Akpor kingdom, Obio/Akpor LGA
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