FG BORROWS N5TN FROM BOND MARKET IN SIX MONTHS

The Federal Government has borrowed approximately N5 trillion from the domestic bond market in the first six months of 2026, according to data from the Debt Management Office (DMO).

The significant borrowing, disclosed on Friday, was primarily through the issuance of treasury bonds and sukuk to finance the 2026 budget deficit and fund critical infrastructure projects. The DMO attributed the high level of borrowing to the need to bridge the gap between revenue and expenditure amid rising fiscal pressures.

Director General of the DMO, Dr. Patience Oniha, said the government remains committed to prudent debt management and will continue to explore sustainable financing options. “The bond market has been a reliable source of funding. We are carefully monitoring our debt profile to ensure it remains within manageable limits,” Oniha stated.

Economists have expressed concern over the pace of borrowing, warning that heavy reliance on the domestic market could crowd out private sector investment and increase interest rates. They called for greater efforts towards revenue diversification and expenditure rationalisation to reduce the need for excessive borrowing.

The opposition has criticised the government for what it described as unsustainable debt accumulation. A spokesman for the Peoples Democratic Party said the high level of borrowing in such a short period is a sign of fiscal mismanagement and will place a heavy burden on future generations.

The Federal Government has defended its borrowing strategy, saying the funds are being deployed into productive sectors that will generate economic growth and revenue in the long term. It also assured that debt servicing obligations are being met as at when due.

As the year progresses, analysts will be closely monitoring the government’s debt management strategy and its impact on the economy. The N5 trillion borrowed in the first half of the year has already surpassed some full-year projections, raising questions about the overall fiscal direction for 2026.