The Federal Government of Nigeria (FG) raised a total of ₦6.17 trillion from the domestic debt market within the first half of 2025, according to newly released data from the Debt Management Office (DMO).
The funds were sourced primarily through Federal Government Bonds (FGN Bonds), Nigerian Treasury Bills (NTBs), and Promissory Notes (P-Notes), which collectively make up the bulk of Nigeria’s domestic debt instruments.
According to the DMO’s data, ₦4.48 trillion was raised in the first quarter of 2025, followed by an additional ₦1.70 trillion in the second quarter, representing a modest 2.26% increase compared to the previous quarter.
This brought Nigeria’s total domestic debt stock to ₦76.59 trillion as of June 30, 2025, underscoring the government’s growing reliance on local borrowing to finance budgetary obligations and sustain economic operations.
Analysts note that the surge in domestic borrowing reflects ongoing fiscal pressures, as oil production levels remain below the 1.8 million barrels per day benchmark, while non-oil revenues continue to underperform. With revenue shortfalls constraining fiscal space, the government has increasingly turned to the debt market to fund capital projects, service obligations, and maintain public spending.
The trend also aligns with the fiscal projections contained in the Medium-Term Expenditure Framework (MTEF), which estimated that the Federal Government would raise over ₦13 trillion from the domestic market in 2025 to bridge its widening budget deficit. However, given the current borrowing pace, that target may be surpassed before the end of the fiscal year.
Economists have expressed concern about the sustainability of Nigeria’s debt profile, warning that the increasing dependence on domestic borrowing could crowd out private sector credit and raise debt servicing costs.
Despite these concerns, government officials maintain that borrowing remains necessary to stimulate growth and sustain key infrastructure investments amid revenue constraints.
The DMO has consistently emphasized that the administration is pursuing a balanced borrowing strategy, combining both domestic and external financing to manage liquidity, minimize refinancing risks, and support Nigeria’s long-term fiscal stability.
