Nigeria’s total public debt surged to N159.28 trillion by the end of 2025, driven largely by a reliance on domestic borrowing which now accounts for over 53% of the nation’s total debt stock.
Nigeria’s total public debt stock reached N159.28 trillion as of December 31, 2025, marking a year-on-year increase of N14.61 trillion from the previous year. According to the latest data from the Debt Management Office (DMO), this represents a 10.1% rise from the N144.67 trillion recorded in December 2024. In dollar terms, the country’s obligations climbed to $110.97 billion, up from $94.23 billion over the same period. The quarterly trajectory also showed upward movement, with a 3.9% increase in the final three months of the year, signaling sustained fiscal pressure on the national economy.
Domestic borrowing remains the primary driver of the nation’s debt architecture, accounting for 53.27% of the total stock at N84.85 trillion. This reflects a 14.1% year-on-year growth in local debt, as the Federal Government continues to lean heavily on the domestic market to bridge fiscal deficits. While external debt also saw growth, reaching N74.43 trillion ($51.86 billion), its relative share of the total portfolio declined slightly from 48.59% in 2024 to 46.73% in 2025. The Federal Government remains the principal debtor, responsible for N80.49 trillion of domestic and N66.27 trillion of external obligations, while the 36 states and the Federal Capital Territory (FCT) account for the remainder.
The DMO clarified that these figures are provisional and were calculated using the Central Bank of Nigeria’s official exchange rate of N1,435.2571/$. Despite the significant nominal increase in the debt ceiling, the agency noted that the overall structure of the portfolio remained relatively stable, even with the subtle shift toward domestic sources. This stability in the debt mix suggests a strategic preference for naira-denominated obligations to mitigate some exchange rate risks, even as the total debt-to-GDP conversation continues to gain prominence among economic observers.
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