By Mohamed KaiKai
Sierra Leone significantly increased domestic borrowing in 2025, with net borrowing rising to 23.7 billion new leones, according to a recent report by Truth Media.
The figure, equivalent to about 23.7 trillion old leones, translates to roughly $1.0 billion to $1.1 billion based on prevailing exchange rates, underscoring mounting fiscal pressures on the government.
The report said the increase was driven largely by the issuance of treasury bills and bonds as authorities sought to finance budget deficits, service existing debt and maintain public spending amid constrained revenues.
Economists warn that heavy reliance on domestic borrowing could raise borrowing costs, crowd out private sector access to credit and increase refinancing risks in the medium term.
Government officials have previously argued that such borrowing is necessary to sustain public services, support infrastructure development and stabilise the economy during periods of economic strain.
However, the scale of the borrowing has sparked debate among analysts and citizens, with questions over whether the funds are being directed toward productive investments capable of generating growth and easing repayment pressures.
Sierra Leone, like many countries in the region, has faced rising debt servicing obligations and reduced access to external financing, forcing greater dependence on the domestic market.
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