In the final quarter of 2025, the Federal Government of Nigeria (FG) borrowed a whopping ₦4.72 trillion by selling short-term Treasury Bills (TBs), marking a dramatic spike in debt raising.
The borrowing came through the Central Bank of Nigeria (CBN), which issued TBs on behalf of the government, as part of its financing strategy under the 2025 budget. That amount is nearly 168 percent higher than the ₦1.76 trillion raised in the preceding quarter (Q3 2025).
According to the CBN’s 2025 Q4 Treasury Bills Issue Programme, the sale includes a mix of maturities: 91-day, 182-day and 364-day bills. The schedule runs from October 1 to December 24, 2025, with the settlement period spanning October 2 to December 18.
Here’s how the issuance broke down by month and tenor:
October 2025: ₦1.22 trillion, comprised of ₦200 billion in 91-day TBs, ₦220 billion in 182-day TBs, and ₦800 billion in 364-day bills.
November 2025: ₦1.35 trillion, made up of ₦200 billion (91-day), ₦250 billion (182-day), and ₦900 billion (364-day) bills.
December 2025 (planned): ₦2.15 trillion, expected to consist of ₦300 billion in 91-day TBs, ₦400 billion in 182-day bills, and ₦1.45 trillion in 364-day securities.
TBs are short-term debt securities issued by the CBN to borrow funds from the public on behalf of the federal government. Besides financing budget deficits, such issuances also serve as a tool to regulate money supply in the economy.
This surge in TB issuances comes against a backdrop of aggressive borrowing by the government. In the first ten months of 2025, FG had already borrowed ₦17.36 trillion from both domestic and foreign sources, a figure well above the ₦13.08 trillion borrowing limit set in the 2025 Appropriation Act.
Economists and analysts have voiced concern about such growing reliance on short-term domestic debt. Research shows that excessive government borrowing, especially via instruments like TBs can “crowd out” credit to the private sector, since banks and other financial institutions may prefer these government securities over private-sector lending.
While other studies suggest TBs and domestic debt instruments can contribute positively to growth when invested productively, the impact remains mixed. Some analyses found little to no significant boost to real economic growth from TB-driven borrowing unless funds are channeled into infrastructure and productive investments.
The key challenge, then, lies not just in raising funds but in deploying them efficiently to stimulate sustainable growth and avoid long-term debt distress.
This massive ₦4.72 trillion TB sale injects liquidity into government coffers but risks crowding out private-sector credit, potentially stalling business expansion. If the borrowed funds aren’t directed into infrastructure or growth-enhancing projects, the heavy reliance on short-term debt could undermine long-term economic stability and investment confidence in Nigeria.
