The Federal Government has increased its planned borrowing for the 2026 fiscal year by N11.31 trillion, raising the total from an earlier projection of N17.89 trillion to N29.20 trillion.

The initial estimate was contained in the 2026 Abridged Budget Call Circular issued in December 2025. However, the revised figure reflects a significant adjustment in the government’s fiscal projections as spending plans expanded.

The increase indicates a widening budget deficit, driven by higher expenditure commitments and persistent revenue challenges. Analysts say the government may be responding to growing demands for infrastructure development, social interventions, and economic stabilisation measures. The revised borrowing plan is expected to cover the shortfall between projected revenue and total expenditure in the 2026 budget.

Experts note that while borrowing remains a key tool for financing development, the sharp increase raises concerns about Nigeria’s rising debt profile and sustainability. Economic observers have warned that higher borrowing could lead to increased debt servicing obligations, which may further strain public finances.

They also caution that excessive reliance on debt financing could impact macroeconomic stability if not properly managed. The development underscores the Federal Government’s continued reliance on borrowing to fund its fiscal operations, amid efforts to boost revenue generation and implement ongoing economic reforms.