FG’s Domestic Debt Rises to N8.1 Trn in Q1 2026, Crowds Out Infrastructure Spending

In the first quarter of 2026, the Federal Government increased domestic borrowing to N8.1 trillion, a 7.4 percent year-on-year rise, to plug a widening fiscal gap. Analysts warn that persistent revenue shortfalls and spending indiscipline are driving up debt. The World Bank cautions that higher debt service costs are crippling critical infrastructure, cutting capital spending from 1.3 percent of GDP in 2024 to 1.0 percent in 2025. Data from the Central Bank of Nigeria and the Debt Management Office show a 63 percent surge in FGN bond issuances and a 24 percent rise in savings bonds, offsetting a 12 percent drop in Treasury Bill borrowing. Experts call for stronger fiscal discipline, improved revenue mobilisation and disciplined budget execution to prevent debt service from crowding out growth-stimulating investments.

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