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Nigeria’s public debt climbed sharply to N159.27 trillion by the end of 2025, a development that highlights mounting fiscal pressures as government borrowing accelerates across federal and subnational levels.
New figures released by the Debt Management Office (DMO) show the debt stock rose by N5.98 trillion from N153.29 trillion recorded at the end of the third quarter of 2025. On a year-on-year basis, the increase is more pronounced, with the total debt expanding by N14.6 trillion from N144.67 trillion in the same period of 2024.
The latest data reflects a sustained reliance on both domestic and external borrowing to finance budget deficits, infrastructure projects, and economic stabilisation efforts. The debt profile covers obligations incurred by the federal government, the 36 states, and the Federal Capital Territory (FCT).
A breakdown of the figures reveals that domestic debt remains the dominant component, standing at N84.84 trillion ($59.11 billion). External debt followed closely at N74.42 trillion ($51.85 billion), converted at the Central Bank of Nigeria’s official exchange rate of N1,435.25 to the dollar as of December 31, 2025.
Compared to December 2024, domestic debt rose significantly by N10.47 trillion, representing a 14.1 percent increase from N74.38 trillion. External debt also recorded growth, albeit at a slower pace, rising by N4.14 trillion from N70.29 trillion over the same period.
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At the federal level, borrowing continues to dominate Nigeria’s debt structure. The federal government accounted for N80.48 trillion of the domestic debt stock, reflecting a quarter-on-quarter increase of N2.67 trillion. In contrast, the combined domestic debt of states and the FCT edged up modestly to N4.36 trillion from N3.96 trillion in the previous quarter.
A similar pattern is evident in external borrowings. The federal government holds the bulk at N66.26 trillion ($51.85 billion), while states and the FCT account for N8.15 trillion ($5.68 billion).
The rising debt trajectory comes amid fresh plans to secure additional external financing. On March 31, President Bola Tinubu requested legislative approval for new loans totalling $6 billion. The proposal includes a $5 billion structured total return swap (TRS) arrangement with First Abu Dhabi Bank, aimed at boosting liquidity and supporting fiscal operations.
While authorities argue that borrowing remains within manageable thresholds and is necessary to drive growth, the pace of accumulation is likely to intensify concerns over debt sustainability, servicing costs, and fiscal resilience, especially in a high-interest-rate and volatile global environment.
With debt servicing already consuming a significant share of government revenue, analysts warn that Nigeria faces narrowing fiscal space, raising the urgency for stronger revenue mobilisation and disciplined spending to prevent further strain on public finances.
