Nigeria’s public debt profile has surged to N159.28 trillion as of December 31, 2025, raising fresh concerns about the sustainability of the country’s fiscal position and its growing dependence on borrowing.
Latest figures published by the Debt Management Office (DMO) indicate that the debt stock rose by N5.98 trillion, or 3.9 per cent, from N153.29 trillion recorded at the end of September 2025.
The data also show a year-on-year increase of N14.61 trillion, representing 10.1 per cent growth from N144.67 trillion in December 2024, underscoring continued pressure on government finances.
A closer look at the trend reveals that Nigeria’s debt has nearly doubled within just over two years, climbing from N87.4 trillion in June 2023 to its current level. The increase is even more pronounced when compared to the N12.1 trillion recorded in 2015, highlighting a steady expansion in public borrowing over time.
According to the DMO, both domestic and external borrowings contributed to the rise recorded in the last quarter of 2025.
External debt increased from N71.48 trillion in September 2025 to N74.43 trillion in December 2025, reflecting a growth of N2.95 trillion, or 4.1 per cent. Domestic debt also rose from N81.82 trillion to N84.85 trillion during the same period, marking an increase of N3.03 trillion, or 3.7 per cent.
Despite the growth across both segments, domestic debt remains the larger component of Nigeria’s total debt stock, accounting for 53.27 per cent, while external debt stands at 46.73 per cent. The structure has remained largely unchanged compared to the previous quarter.
Further analysis shows that the Federal Government continues to dominate the country’s borrowing, particularly within the domestic market. Its domestic debt rose from N77.81 trillion in September 2025 to N80.49 trillion by December 2025.
Debt owed by states and the Federal Capital Territory also increased slightly, moving from N4.00 trillion to N4.36 trillion over the same period.
In dollar terms, Nigeria’s total public debt grew from $103.94 billion in September 2025 to $110.97 billion in December 2025, representing an increase of $7.04 billion. External debt rose from $48.46 billion to $51.86 billion, while domestic debt increased from $55.47 billion to $59.12 billion.
However, exchange rate adjustments helped moderate the naira value of external debt, with the DMO applying N1,474.85 per dollar in September 2025 and N1,435.26 in December 2025.
Year-on-year figures suggest that domestic borrowing was the primary driver of the increase in the country’s debt profile. Domestic debt rose from N74.38 trillion in December 2024 to N84.85 trillion in December 2025, reflecting a significant increase of N10.47 trillion, or 14.1 per cent.
By contrast, external debt grew more moderately, rising from N70.29 trillion to N74.43 trillion within the same period, an increase of N4.14 trillion, or 5.9 per cent.
The Federal Government accounted for the largest share of the debt stock, with N80.49 trillion in domestic debt and N66.27 trillion in external obligations. States and the FCT recorded N8.16 trillion in external debt and N4.36 trillion in domestic debt.
The composition of the debt stock also shifted slightly over the past year, with domestic debt increasing its share from 51.41 per cent in December 2024 to 53.27 per cent in December 2025. External debt, on the other hand, declined from 48.59 per cent to 46.73 per cent.
Speaking at the IMF Spring Meetings in Washington, DC, Director-General of the DMO, Patience Oniha, said Nigeria’s borrowing framework is backed by legal safeguards aimed at ensuring transparency and accountability.
She explained that all borrowing requests are subject to approval by the National Assembly under existing laws, including the Fiscal Responsibility Act, allowing for detailed legislative scrutiny.
According to her, the process enhances investor confidence by ensuring that borrowing decisions comply with established procedures.
Oniha, however, noted that there is a need to strengthen the technical capacity of lawmakers, particularly in understanding complex debt instruments and evolving market dynamics.
She called for deeper collaboration with institutions such as the World Bank and the International Monetary Fund to support capacity building and improve oversight.
The DMO boss also emphasised the need to balance borrowing with stronger revenue generation, warning that excessive reliance on debt could constrain fiscal space and limit long-term development.
Meanwhile, concerns continue to mount among stakeholders over the rising debt profile.
Former Anambra State governor and Labour Party presidential candidate, Peter Obi, criticised the trend, arguing that increased borrowing has not translated into meaningful development.
He noted that despite key reforms such as the removal of fuel subsidies, Nigeria’s debt has continued to rise, raising concerns about fiscal discipline and efficiency in public spending.
Obi warned that unless urgent measures are taken to reduce borrowing and boost productivity, the country’s economic outlook could deteriorate further.
Economic analysts say the latest figures highlight the need for comprehensive fiscal reforms, improved revenue mobilisation, and prudent debt management to prevent further escalation of Nigeria’s debt burden.
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