FG increases domestic borrowing by 241%

Nigeria's Federal Government is set to significantly increase its domestic borrowing in the third quarter of 2026, with plans to raise N5.8 trillion through the issuance of Treasury Bills (TBs). This borrowing initiative, part of the government's 2026 budget plan, marks a substantial 241 percent year-on-year increase from the N1.76 trillion raised in the third quarter of 2025.

The Central Bank of Nigeria (CBN), acting on behalf of the federal government, will manage the issuance of these short-term debt instruments. Treasury Bills are primarily used by the CBN to borrow funds from the public and to control the money supply within the economy. The TB issuance program for Q3 2026 is scheduled to run from July 1st to September 23rd, with settlements concluding on September 24th.

During this period, the CBN plans to issue TBs with varying tenors: N900 billion will be issued for 91 days, another N900 billion for 182 days, and a substantial N4 trillion for 364 days. The issuance will be distributed across July, August, and September, with N2 trillion planned for July, N2.1 trillion for August, and N1.7 trillion for September. These amounts are allocated across the different bill tenors, with the 364-day bills constituting the largest portion of the planned issuance each month.

This aggressive borrowing strategy underscores the government's reliance on domestic debt markets to finance its expenditures and manage its fiscal operations. The increase in TB issuance reflects the government's borrowing needs for the upcoming fiscal year, aiming to bridge potential deficits and fund various developmental projects outlined in the 2026 budget.