Nigeria’s Public Debt Stock Rises By 11.6% Year-on-year To N152.40trn

Nigeria’s total public debt rose significantly by 11.6 percent year-on-year to N152.40 trillion as of June 30, 2025, according to the latest data from the Debt Management Office (DMO) released on Saturday.

This marks an increase of N15.89 trillion compared to the N136.51 trillion recorded in June 2024, highlighting the continued expansion of Nigeria’s debt burden amid fiscal pressures.

In dollar terms, public debt grew from approximately $89.15 billion last year to $99.66 billion by June 2025, reflecting a 11.7 per cent year-on-year rise.

The DMO breakdown shows the federal government’s debt accounts for N141.08 trillion or 92.6 percent of the total, consisting of N64.49 trillion in external borrowings and N76.59 trillion in domestic liabilities.

Nigeria’s external debt increased to $46.98 billion (N71.85 trillion) in June 2025, up from $42.10 billion (N66.56 trillion) a year earlier.

Multilateral creditors, including the World Bank, African Development Bank, IMF, and Islamic Development Bank, hold nearly half of the external debt, with the World Bank alone holding $18.04 billion, about 38 percent of total external obligations.

Bilateral loans stand at $6.20 billion, dominated by the Export-Import Bank of China’s $4.91 billion exposure. Commercial borrowings, largely from Eurobonds, reached $17.32 billion—36.9 per cent of the external portfolio—posing risks amid global market volatility.

Domestically, Nigeria’s debt increased by 11.2 percent year-on-year to N80.55 trillion in June 2025 from N72.41 trillion in June 2024.

Federal government bonds represented the bulk of local debt at N60.65 trillion, largely comprising FGN bonds, securitised Ways and Means advances from the Central Bank of Nigeria (CBN), and dollar-denominated bonds.

Other domestic debt instruments include Treasury bills (N12.76 trillion), Sukuk bonds (N1.29 trillion), savings bonds, green bonds, and promissory notes. The securitisation of the CBN’s Ways and Means advances reflects ongoing fiscal challenges even as the government aims to restore monetary discipline and investor confidence.The year-on-year growth underscores the government’s heavy reliance on both domestic and foreign borrowing to manage fiscal deficits amid economic reforms and external shocks. Analysts caution that the rising debt stock heightens fiscal vulnerabilities, especially given Nigeria’s dependence on international capital markets and concessional financing sources.

Nigeria’s total public debt has climbed to N152.40 trillion as of June 30, 2025, according to the latest update from the Debt Management Office (DMO) released on Saturday.

The figure reflects an increase of N3.01 trillion from the N149.39 trillion recorded at the end of March 2025—representing a 2.01 per cent rise over the three-month period. In dollar terms, the debt grew from $97.24 billion to $99.66 billion, indicating a 2.49 per cent increase.

According to the DMO breakdown, the Federal Government accounted for N141.08 trillion, or 92.6 per cent of the total public debt. This includes N64.49 trillion in external borrowings and N76.59 trillion in domestic debt.

The data highlights the government’s sustained dependence on both local and foreign loans to bridge fiscal shortfalls amid ongoing reforms in revenue mobilisation and foreign exchange policy.

Further analysis shows that Nigeria’s external debt stood at $46.98 billion (N71.85 trillion) by June 2025, compared to $45.98 billion (N70.63 trillion) in March.

The World Bank remains the country’s biggest external creditor with $18.04 billion, largely from the International Development Association (IDA) window, accounting for about 38 per cent of total external obligations.

Multilateral creditors collectively hold $23.19 billion, or 49.4 per cent, of the external debt. Other key multilateral partners include the African Development Bank (AfDB), International Monetary Fund (IMF), and Islamic Development Bank (IsDB).

Bilateral loans were estimated at $6.20 billion, with the Export-Import Bank of China leading at $4.91 billion, followed by smaller exposures to France, Japan, India, and Germany.

Commercial borrowings—mainly Eurobonds—were valued at $17.32 billion, representing 36.9 per cent of the total external portfolio, while syndicated facilities and commercial bank loans amounted to $268.9 million.

Analysts warn that the country’s substantial exposure to Eurobonds increases vulnerability to global market volatility, while its reliance on concessional multilateral financing underscores lingering fiscal weaknesses and limited access to low-cost credit.

Domestically, Nigeria’s debt profile rose to N80.55 trillion in June, up from N78.76 trillion in March—an increment of N1.79 trillion or 2.27 per cent.

Federal government bonds dominated the local debt component at N60.65 trillion, representing 79.2 per cent of total domestic liabilities. This figure includes N36.52 trillion in FGN bonds, N22.72 trillion from the securitised Ways and Means advances obtained from the Central Bank of Nigeria, and N1.40 trillion in dollar-denominated bonds.

Other components of domestic debt include N12.76 trillion in Treasury bills (16.7 per cent), N1.29 trillion in Sukuk bonds, N91.53 billion in savings bonds, N62.36 billion in green bonds, and N1.73 trillion in promissory notes.

The securitisation of the CBN’s Ways and Means lending—essentially converting overdrafts into long-term obligations—reflects the fiscal constraints confronting the Tinubu administration, even as it moves to enforce monetary discipline and strengthen investor confidence in the economy.