Follow Us on Google
•How debts rose by N900bn in three months
From Adanna Nnamani, Abuja
Nigeria’s total public debt has climbed to N153.29 trillion as of September 30, 2025, marking a fresh increase of N900 billion within three months.
Official figures released by the Debt Management Office (DMO) reveals that the new figure represents a 0.59 per cent rise from the N152.39 trillion recorded in June 2025, indicating the Federal Government’s sustained borrowing drive to bridge widening fiscal gaps and finance infrastructure projects.
DMO said the public debt profile comprises domestic and external debt owed by the Federal Government, the 36 states and the Federal Capital Territory (FCT).
A breakdown of the data shows that total domestic debt stood at N81.81 trillion (about $55.47 billion), while external debt was put at N71.47 trillion (about $48.46 billion).
The Federal Government continues to account for the bulk of the debt burden. Its domestic debt rose to N77.81 trillion in the third quarter of 2025 from N76.58 trillion in the second quarter. On the subnational side, domestic debt owed by states and the FCT increased slightly from N3.96 trillion in June to N4 trillion in September.
The steady rise in debt reflects the government’s aggressive push to finance infrastructure and meet recurrent obligations amid revenue shortfalls. Nigeria’s 2026 budget deficit is projected at no less than N23.85 trillion, representing 4.28 per cent of Gross Domestic Product (GDP), with borrowing expected to cover a significant portion of the gap.
Historically, the country’s debt profile has expanded significantly over the past decade. Total public debt stood at about N12.6 trillion in 2015 before rising sharply due to recession, oil price crashes, COVID-19 shocks and exchange rate pressures. By the time President Bola Tinubu assumed office in May 2023, the country’s total public debt had climbed to about N87 trillion, according to the DMO.
Other News
A major factor behind the sharp jump in recent years has been the depreciation of the naira following foreign exchange reforms introduced by the Central Bank of Nigeria (CBN) in 2023. The floating of the naira significantly increased the naira value of Nigeria’s external debt, even without equivalent fresh dollar borrowings.
Debt sustainability has remained a major concern among economists. In recent years, debt servicing has consumed a large share of government revenue, at some points exceeding 80 per cent of retained earnings, thereby limiting funds available for capital projects and social services.
The controversy surrounding borrowing intensified in 2023 when the National Assembly approved the securitisation of about N22.7 trillion in Ways and Means advances granted by the CBN to the Federal Government. The move formally added the previously undisclosed overdrafts into the public debt stock, sparking debate over fiscal discipline.
Public discourse around borrowing has remained politically sensitive. In January 2025, the DMO dismissed a report claiming Nigeria’s debt ballooned from N21 trillion to N142 trillion under the current administration, clarifying that the country’s debt stood at N87 trillion when he assumed office.
Similarly, a report released on May 17, 2025, by the National Orientation Agency (NOA) stated that both federal and state governments had recorded debt reductions at certain periods, supported by increased disbursements from the Federation Account Allocation Committee (FAAC).
International financial institutions have also weighed in. Both the International Monetary Fund (IMF) and the World Bank have repeatedly urged Nigeria to prioritise revenue mobilisation, tax reforms and improved fiscal management over excessive borrowing.
Despite the concerns, the Federal Government has consistently defended its borrowing strategy, arguing that loans are being channelled into rail lines, highways, power projects and social intervention programmes aimed at stimulating growth.
However, with the debt stock continuing on an upward trajectory, fresh questions are being raised about sustainability, debt servicing capacity and the long-term impact on the nation’s economy. Analysts warn that without significant improvement in revenue generation and economic expansion, Nigeria’s rising debt burden may pose deeper fiscal challenges in the years ahead.
