Nigeria’s debt hits ₦159.28trn as Domestic borrowing surges sharply

By Kazeem Ugbodaga

Nigeria’s total public debt rose to $110.97 billion as of December 31, 2025, reflecting sustained borrowing by both the Federal Government and subnational entities, according to latest data released by the Debt Management Office (DMO).

The figures show that the country’s total debt stock stood at ₦159.28 trillion, with domestic debt accounting for the larger share of the portfolio.

From December 31, 2024, the Federal Government and sub-nationals have added ₦14.61 trillion debt. The nation’s debt was ₦144.67 trillion as at 2024 December.

A breakdown of the data indicates that domestic debt amounted to $59.12 billion (₦84.85 trillion), representing 53.27 per cent of the total debt, while external debt stood at $51.86 billion (₦74.43 trillion), accounting for 46.73 per cent.

The Federal Government remained the dominant borrower, responsible for the bulk of both domestic and external obligations.

Of the total external debt, the Federal Government accounted for $46.17 billion (₦66.27 trillion), representing 41.61 per cent of the overall debt stock, while states and the Federal Capital Territory (FCT) contributed $5.68 billion (₦8.16 trillion).

Similarly, domestic debt was largely driven by the Federal Government, which recorded $56.08 billion (₦80.49 trillion), equivalent to 50.53 per cent of the total debt. States and the FCT accounted for $3.04 billion (₦4.36 trillion), or 2.74 per cent.

The data underscores a continued reliance on domestic borrowing, which has outpaced external debt, reflecting efforts to mitigate foreign exchange risks while deepening the local debt market.

However, concerns have been raised over the growing debt burden and its implications for fiscal sustainability, particularly in the face of rising debt servicing costs and pressure on government revenues.

The DMO noted that the figures were computed using the Central Bank of Nigeria’s official exchange rate of ₦1,435.26 to the dollar as at the end of 2025.