December 22, 2025
News | SUNTV Global Channel
Nigeria is set to take on ₦54.7 trillion in new loans between 2026 and 2028, according to the Federal Government’s newly approved Medium Term Expenditure Framework (MTEF), intensifying concerns over the country’s fast-rising public debt and long-term fiscal health.
A review of the 2026–2028 MTEF shows that the planned borrowing will be spread across the three fiscal years to finance widening budget deficits, debt servicing obligations, and recurrent government expenditure.
How Much Nigeria Plans To Borrow Each Year
According to the MTEF document:
- ₦17.8 trillion is projected for borrowing in 2026
- ₦21.1 trillion in 2027
- ₦15.8 trillion in 2028
This brings the total planned borrowing to ₦54.7 trillion within three years.
Domestic Borrowing Takes The Lead
The borrowing structure reveals a continued heavy reliance on domestic loans, despite repeated warnings from economists about crowding out private sector credit.
2026 borrowing plan
- Domestic: ₦14.3 trillion
- External: ₦3.5 trillion
2027 borrowing plan
- Domestic: ₦16.9 trillion
- External: ₦4.2 trillion
2028 borrowing plan
- Domestic: ₦12.6 trillion
- External: ₦3.1 trillion
Analysts say the pattern suggests the government is prioritising local debt to avoid exchange-rate exposure, even as domestic interest rates remain high.
Nigeria’s Public Debt Hits ₦149.3 Trillion
The aggressive borrowing outlook comes as Nigeria’s total public debt continues to climb. Data from the Debt Management Office (DMO) shows that the country’s debt stock rose to ₦149.3 trillion as of March 31, 2025, up from ₦144.6 trillion in December 2024.
Within just three months:
- Domestic debt rose by ₦4.4 trillion, from ₦74.3 trillion to ₦78.7 trillion
- External debt increased by ₦350 billion, from ₦70.28 trillion to ₦70.63 trillion
A Consistent Upward Debt Trend
Nigeria’s debt profile has followed a steady upward trajectory:
- ₦142 trillion in September 2024
- ₦144 trillion in December 2024
- ₦149.3 trillion by March 2025
As of September 2024:
- External debt stood at ₦68.8 trillion
- Domestic debt was ₦73.4 trillion
The Federal Government accounted for ₦69.2 trillion of domestic debt, while states and the Federal Capital Territory owed ₦4.2 trillion.
Earlier Data Shows Rapid Acceleration
As of June 2024, Nigeria’s total public debt was ₦134.2 trillion, made up of:
- External debt: ₦63 trillion
- Domestic debt: ₦71.2 trillion
At the time, the Federal Government alone owed ₦66.9 trillion in domestic loans, while state governments accounted for ₦4.2 trillion.
Why It Matters
Experts warn that Nigeria’s growing dependence on borrowing — especially domestic debt — could:
- Increase debt servicing costs
- Limit funding available to businesses
- Put pressure on interest rates
- Constrain future government spending
With debt levels approaching ₦150 trillion, fiscal analysts say transparency, revenue growth, and expenditure discipline will be critical to preventing a debt sustainability crisis.
