Freetown, 14th May 2026 — Sierra Leone sharply expanded its reliance on domestic debt markets in 2025, leaning heavily on short‑term treasury bills to finance widening fiscal pressures, according to the government’s latest financial statements.
Net domestic borrowing rose to NLe23.7 billion in FY2025, up from NLe17.4 billion the previous year, underscoring the state’s growing dependence on local liquidity amid constrained external financing.
Treasury bills remained the government’s primary funding instrument. Total issuances climbed to NLe21 billion, compared with NLe15.6 billion in 2024, across 91‑day, 182‑day, and 364‑day maturities. Repayments also increased, reaching NLe16.4 billion, yet the outstanding stock of treasury bills still expanded to NLe19.3 billion at the end of 2025, up from NLe15.1 billion a year earlier. Analysts warn this trend reinforces concerns over mounting refinancing risks and rising debt‑servicing costs.
Central bank financing showed a mixed picture. Bridging loans from the Bank of Sierra Leone were largely cleared during the year, leaving only a negligible residual balance settled in 2026. However, Ways and Means advances, often seen as a sign of fiscal stress, rose by NLe268.7 million to NLe600.7 million, compared with NLe432 million in FY2024.
Longer‑term borrowing also edged higher. Outstanding treasury bonds increased to NLe6.4 billion from NLe4.7 billion, consisting mainly of two‑year, three‑year, and five‑year instruments held by the central bank under arrangements designed to convert non‑marketable debt into tradable securities.
The growing stock of domestic liabilities leaves the government increasingly exposed to elevated interest costs, particularly as treasury yields continue to rise in response to tighter liquidity conditions and heightened investor demand for risk premiums.
The figures highlight the delicate balance Sierra Leone faces: financing fiscal needs through domestic markets while managing the risks of higher debt servicing and potential crowding‑out of private sector credit.
