Nigeria’s total public debt climbed to N153.29 trillion as of September 30, 2025, marking a N900 billion increase, or 0.59 percent, from the N152.39 trillion recorded in June 2025.
The Debt Management Office (DMO) attributes this growth to sustained borrowing, primarily in the domestic market, amid widening budget deficits and reliance on local securities.
The debt stock, equivalent to $103.94 billion, comprises domestic debt of N81.81 trillion ($55.47 billion) and external debt of N71.47 trillion ($48.46 billion).
The federal government’s domestic debt rose to N77.81 trillion from N76.58 trillion in Q2, while states and the Federal Capital Territory (FCT) saw a marginal increase to N4 trillion from N3.96 trillion.
This reflects the government’s preference for local borrowing to fund deficits, with bonds dominating about 80 percent of the domestic portfolio.
The rise occurs against a backdrop of economic pressures, including high inflation, currency devaluation, and subsidy removals, which have increased servicing costs.
External debt remains a concern due to naira volatility, though multilateral loans provide some relief. The DMO has delayed the Q3 data release, prompting questions on transparency, but the figures confirm steady growth under the current administration.
Analysts warn that unchecked borrowing could strain fiscal sustainability, with the debt-to-GDP ratio approaching thresholds that trigger international scrutiny.
The government maintains that borrowings fund infrastructure and social programs, but critics call for prudent management to avoid a debt crisis.
Nigeria’s Public Debt Breakdown (Q3 2025)
| Category | Amount (Naira) | Amount (USD) |
|---|---|---|
| Total Debt | N153.29trn | $103.94bn |
| Domestic Debt | N81.81trn | $55.47bn |
| External Debt | N71.47trn | $48.46bn |
| FGN Domestic | N77.81trn | – |
| States & FCT Domestic | N4trn | – |
This update emphasizes the need for fiscal reforms to balance growth and debt obligations in Nigeria.
“The rise occurs against a backdrop of economic pressures, including Naira fluctuations to N1,490/USD in the parallel market and petrol prices hitting N1,000/liter.”
Rising debt highlights the need for stronger financial controls, as seen in the CBN’s new account opening rules with liveness verification.”