The Federal Government’s domestic borrowing rises by 90.5 per cent year-on-year to N24.7 trillion between January and August 2026, compared with N12.98 trillion recorded during the same period in 2025.

The increase is largely driven by higher issuance of FGN bonds and Treasury Bills, with experts warning that the borrowing could crowd out businesses and households from accessing credit.

CBN data shows that credit to the government grows by 43 per cent to N33.92 trillion in July 2026, while credit to the private sector rises by only 9.6 per cent to N83.43 trillion.

Experts say the increased borrowing provides attractive returns for investors but makes it more difficult and expensive for businesses to obtain loans. They also warn that rising debt-service costs could reduce funds available for infrastructure, healthcare and education.

The Federal Government targets N29.2 trillion in domestic borrowing for 2026, meaning the N24.7 trillion already borrowed represents 84.7 per cent of the target. Experts project that total domestic borrowing could reach between N30 trillion and N34 trillion by the end of the year if government spending continues to exceed revenue.