Nigeria’s projected N20.12 trillion budget deficit for the 2026 fiscal year could severely constrain access to credit for the private sector, analysts have warned.
According to the 2026–2028 Medium-Term Expenditure Framework (MTEF), the federal government plans to finance N14.30 trillion, about 71.1% of the total deficit, through domestic borrowing.
Analysts say this level of borrowing may be technically feasible but could trigger sustained high interest rates, limit credit availability for corporates, and intensify competition for limited liquidity in the financial system.