Nigeria’s public debt profile rose sharply to N159.27 trillion at the end of 2025, reflecting mounting fiscal pressures and increased borrowing by both federal and subnational governments.
The latest figures released by the Debt Management Office (DMO) show an increase of N14.6 trillion compared to N144.67 trillion recorded in the corresponding period of 2024, and a N5.98 trillion rise from the N153.29 trillion posted at the end of the third quarter of 2025.
According to the DMO, the debt stock comprises both domestic and external obligations of the federal government, the 36 states and the Federal Capital Territory.
A breakdown indicates that domestic debt stood at N84.84 trillion, while external debt was put at N74.42 trillion, underscoring the continued reliance on both local and foreign borrowing to finance budgetary gaps.
The agency noted that domestic debt rose significantly from N74.38 trillion in December 2024, marking a 14.1 per cent increase, while external debt climbed by N4.14 trillion within the same period.
The Federal Government accounted for the bulk of the liabilities, with domestic debt estimated at N80.48 trillion, while states and the FCT recorded a marginal increase to N4.36 trillion.
On the external side, the Federal Government’s debt stood at N66.26 trillion, with subnational governments accounting for N8.15 trillion.
The DMO said the figures were computed using the Central Bank of Nigeria’s official exchange rate of N1,435.25 to the dollar as of December 31, 2025.
The rising debt comes amid fresh borrowing plans by the administration of President Bola Tinubu, who recently sought National Assembly approval for external loans totalling $6 billion.
In a request conveyed to Senate President Godswill Akpabio, the president outlined plans for a structured total return swap financing arrangement of up to $5 billion from First Abu Dhabi Bank in the United Arab Emirates.
Analysts warn that while borrowing remains critical for infrastructure and development financing, the rising debt burden raises concerns over sustainability, debt servicing costs, and fiscal stability in the medium term.
