Illustration of inflation. Photo: Premium Times.
A combination of aggressive fiscal expansion, persistent inflation risks, and tactical liquidity management has triggered a massive surge in government debt issuance, according to the latest Fixed Income Thematic Report by Meristem Securities Limited.
The report, issued on Thursday, highlights a deliberate strategy by fiscal authorities to frontload borrowing early in the year to mitigate the impact of macroeconomic uncertainties.
The primary catalyst behind the accelerated borrowing is a substantial revision to the national fiscal plan.
The report stated, “Our expectation at the start of the year was for a material acceleration in government borrowing, driven by the expansion of the 2026 budget to N68.32tn from N58.18tn and the corresponding increase in the borrowing plan to N29.20tn from N11.31tn.”
