Nigeria’s total public debt rose to N159.28tn as of December 31, 2025, driven by fresh domestic and external borrowings, according to data released by the Debt Management Office.
The latest figure represents a quarter-on-quarter increase of N5.98tn, or 3.9 per cent, from N153.29tn recorded at the end of September 2025. On a year-on-year basis, the debt stock rose by N14.61tn, or 10.1 per cent, from N144.67tn as of December 2024.
An analysis of the data shows that both domestic and external borrowings contributed to the increase in the final quarter of 2025. External debt rose from N71.48tn in September to N74.43tn in December, reflecting a N2.95tn (4.1 per cent) increase. Similarly, domestic debt climbed from N81.82tn to N84.85tn, marking a rise of N3.03tn (3.7 per cent).
Despite the increases, domestic debt remained the larger component of the country’s total debt stock, accounting for 53.27 per cent as of December 2025, compared to 46.73 per cent for external debt. This structure remained largely unchanged from September 2025, indicating a stable debt composition.
Further breakdown shows that the Federal Government continued to dominate borrowing, particularly in the domestic market. Federal Government domestic debt rose from N77.81tn in September to N80.49tn in December, while domestic debt owed by states and the Federal Capital Territory increased from N4.00tn to N4.36tn.
In dollar terms, Nigeria’s public debt rose from $103.94bn in September 2025 to $110.97bn in December 2025, an increase of $7.04bn within the quarter. External debt grew from $48.46bn to $51.86bn, while domestic debt rose from $55.47bn to $59.12bn.
However, exchange rate movements partly moderated the naira value of external debt, with the DMO applying an official rate of N1,474.85/$ in September and N1,435.26/$ in December.
On a year-on-year basis, domestic borrowing was the primary driver of debt growth. Total domestic debt increased from N74.38tn in December 2024 to N84.85tn in December 2025, representing a N10.47tn (14.1 per cent) rise. In contrast, external debt rose from N70.29tn to N74.43tn, an increase of N4.14tn (5.9 per cent).
The Federal Government accounted for the bulk of the debt stock, with N66.27tn in external debt and N80.49tn in domestic debt as of December 2025. States and the FCT recorded N8.16tn in external debt and N4.36tn in domestic debt.
The debt composition also shifted slightly over the year. External debt declined from 48.59 per cent of total debt in December 2024 to 46.73 per cent in December 2025, while domestic debt increased from 51.41 per cent to 53.27 per cent.
Speaking at a panel session during the IMF Spring Meetings in Washington, DC, the Director-General of the DMO, Patience Oniha, said Nigeria’s borrowing process is subject to strict legislative approval and oversight, enhancing transparency and investor confidence.
She explained that under existing laws, all borrowings must receive approval from the National Assembly, ensuring lawmakers scrutinise the terms, lenders, and implications of each loan.
According to Oniha, the process often conducted publicly helps reinforce accountability and signals compliance with legal frameworks, thereby boosting investor confidence.
She added that the DMO regularly publishes debt data and submits performance reports to relevant committees of the legislature, covering debt stock, servicing obligations, and projections.
However, she noted that the system could be strengthened through improved legislative capacity, given the increasing complexity of debt instruments and evolving market conditions. Oniha called for enhanced collaboration with development partners such as the World Bank and the International Monetary Fund to support training for lawmakers.
She stressed the need to balance borrowing with stronger revenue mobilization, warning that stakeholders must consider how rising debt affects fiscal space and long-term development.
“We should be looking at how debt can affect fiscal space, how it can support development, and at what point we should begin to focus more on revenues instead of continuous borrowing,” she said.
