FG Allays Fears Over Nigeria’s Debt, Says Borrowing Has Not Superceded CBN Legal Limit

The Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, has stated that the Federal Government has not superceded the 5 percent borrowing limit of the Central Bank of Nigeria (CBN).

He noted that Nigerians are already enjoying the gains of key reforms so far implemented by the President Bola Tinubu-led administration.

Bagudu stated this at the 2025 KPMG/Arise News Budget Programme. He added that stability in the foreign exchange market and declining food inflation are evidence that Nigeria is reaping the gains of the reforms.

The minister allayed concerns over the country’s growing debt burden, assuring that the government would not exceed its legal borrowing limits, particularly from domestic sources.

Bagudu further assured that the federal government would adopt innovative financing methods, including local bonds and external borrowing, to meet its fiscal needs.

Bagudu also stressed that asset sales, a policy favoured by the government, would only be carried out when market conditions are optimal to maximise value.

Specifically, he said the government had been able to address the issues around insecurity which had prevented farmers from accessing their farms. As a result, he said there’s currently a boost in food production which had reduced food inflation.

He also pointed to the relative stability in the country’s Foreign Exchange market and and the deceleration in headline inflation as evidence that Tinubu’s policies were working.