Nigeria’s Debt Rises By N14.61trn To N159.28trn

BY MARK ITSIBOR, Abuja and  BUKOLA ARO-LAMBO, Lagos

Nigeria’s total public debt increased by N14.61 trillion in 2025, rising to N159.28 trillion as of 31 December, according to the latest provisional data released by the Debt Management Office (DMO) on Wednesday.

The figure represents a 10.1 per cent year-on-year growth compared to the N144.67 trillion recorded at the end of 2024, underscoring sustained borrowing to finance fiscal operations.

According to the latest data released by the debt office, Nigeria’s debt stock rose from N153.29 trillion recorded at the end of September 2025, representing a quarter-on-quarter increase of N5.98 trillion or 3.9 per cent.

Using the Central Bank of Nigeria (CBN) official exchange rate of $1/N1,435.25 as at 31 December 2025 to convert external debt to naira, in dollar terms, total public debt also rose from $103.94 billion to $110.97 billion within the same period.

On a year-on-year basis, Nigeria’s debt profile rose by N14.61 trillion from N144.67 trillion in December 2024 to N159.28 trillion in December 2025, translating to a 10.1 per cent increase. In dollar terms, the debt stock grew by $16.75 billion from $94.23 billion.

A breakdown of the figures shows that domestic debt remained the dominant component of the country’s total obligations, accounting for 53.27 per cent of the overall debt stock as of December 2025.

Domestic debt rose to N84.85 trillion from N81.82 trillion in September 2025, reflecting a quarterly increase of N3.03 trillion or 3.7 per cent. Compared to N74.38 trillion recorded in December 2024, domestic debt surged by N10.47 trillion, representing a 14.1 per cent year-on-year increase.

In dollar terms, domestic debt stood at $59.12 billion in December 2025, up from $55.47 billion in September and $48.44 billion a year earlier, highlighting the government’s continued reliance on the local debt market to finance fiscal gaps.

The federal government accounted for the bulk of domestic debt at N80.49 trillion, representing over half of the total public debt, while states and the Federal Capital Territory accounted for N4.36 trillion.

On the external side, Nigeria’s debt stock rose moderately to N74.43 trillion in December 2025, representing 46.73 per cent of total public debt.

This marks an increase of N2.95 trillion from N71.48 trillion recorded in September 2025, and a year-on-year rise of N4.14 trillion from N70.29 trillion in December 2024.

In dollar terms, external debt increased to $51.86 billion from $48.46 billion in September and $45.78 billion in December 2024. The Federal Government continued to account for the largest share of external debt at N66.27 trillion, while states and the FCT held N8.16 trillion.

Despite the sustained rise in overall debt, the structure of Nigeria’s debt portfolio remained relatively stable over the period, with a slight tilt towards domestic borrowing.

Domestic debt accounted for 53.27 per cent of the total in December 2025, compared to 53.37 per cent in September 2025 and 51.41 per cent in December 2024. Conversely, external debt declined marginally in proportion to 46.73 per cent from 48.59 per cent a year earlier.