Nigeria’s total public debt has surged to a record $103.94 billion (₦153.29 trillion) as of the third quarter of 2025, highlighting mounting fiscal pressures and a growing dependence on domestic borrowing to fund persistent budget deficits, according to the latest public debt report from the Debt Management Office.
The increase of $661.4 million (₦890 billion), or 0.58%, from $103.28 billion (₦152.40 trillion) at the end of June 2025 underscores the steady expansion of Nigeria’s debt profile despite repeated government assurances of prudent revenue allocation.
Domestic borrowing outpaces external obligations
The report shows that domestic debt now accounts for $55.48 billion (₦81.82 trillion), or 53.37% of total debt, slightly outpacing external obligations of ₦71.48 trillion ($48.46 billion) or 46.63%. The federal government retains the bulk of the debt, $92.17 billion (₦141.29 trillion ), while sub-national governments collectively owe $7.83 billion (₦12.00 trillion).
External debt remains heavily dominated by multilateral lenders. The World Bank’s International Development Association holds $23.41 billion (₦34.53 trillion), representing 48.31% of foreign debt.
Bilateral loans, largely from China’s Exim Bank, total $6.29 billion (₦9.28 trillion) or 12.97%, while commercial borrowings, primarily Eurobonds, account for $17.32 billion (₦25.57 trillion) or 35.74%.
Analysts note that the rising domestic debt reflects a structural reliance on the local bond market to finance deficits amid limited access to cheap external financing, as global interest rates remain elevated.
Debt trajectory accelerates over the decade
Nigeria’s public debt has climbed sharply over the last ten years. When former President Goodluck Jonathan left office in May 2015, total debt stood at roughly ₦12.6 trillion ($8.55 billion). By May 2023, at the end of Muhammadu Buhari’s tenure, it had ballooned to ₦87.38 trillion ($59.18 billion)—an average annual growth exceeding 20%.
Under President Bola Tinubu, the debt rose to over ₦142 trillion ($96.40 billion) by September 2024 and now tops ₦153 trillion ($103.94 billion), propelled by post-subsidy removal spending and recurring revenue shortfalls.
Analysts warn on debt sustainability
With the debt-to-GDP ratio now exceeding 50%, well above the government’s self-imposed 40% ceiling, experts caution that Nigeria’s fiscal trajectory may be unsustainable.
John Oboh, a leading financial analyst, said: “The current debt accumulation is alarming and raises serious questions about Nigeria’s fiscal health.” He stressed the urgency of strategic spending, targeted investments, and stronger revenue mobilisation to ensure Nigeria can service its obligations while preserving long-term fiscal stability.
NB: Local currency have been converted to US dollar using ₦1,351/$1 as of February 20, 2026
