Nigeria’s public debt rises to N153.29tn as of September 2025
Nigeria’s public debt climbed to N153.29tn as of September 30, 2025, underscoring sustained fiscal pressures and a continued reliance on both domestic and external borrowing to finance government operations and development priorities.
Fresh data released by the Debt Management Office (DMO) show that the country’s total debt stock increased from N152.40tn recorded at the end of June 2025.
The N893.87bn quarter-on-quarter expansion reflects incremental borrowings across federal and subnational levels, even as authorities signal a shift toward alternative financing strategies.
In dollar terms, Nigeria’s public debt rose from $99.66bn in June to $103.94bn by the end of September, representing a $4.28bn increase within three months. The growth trajectory highlights the interplay between new borrowings and exchange rate movements in shaping the country’s debt metrics.
External debt nears half of total obligations
A breakdown of the September figures indicates that external liabilities stood at $48.46bn, equivalent to N71.48tn. This represents 46.63 per cent of Nigeria’s public debt, slightly below the 47.14 per cent share recorded in June when external debt was $46.98bn.
The $1.48bn increase in external obligations during the quarter signals continued engagement with multilateral, bilateral and commercial creditors. However, the naira valuation of foreign debt was moderated by exchange rate dynamics.
The DMO converted September external debt at the official rate of N1,474.85/$, compared to N1,529.2105/$ used for June data, reflecting relative currency strengthening within the review period.
Multilateral institutions remain Nigeria’s largest external financiers. Loans from the World Bank Group and the African Development Bank Group, alongside other development partners, amounted to $23.41bn, accounting for 48.31 per cent of total external debt.
Within this category, the International Development Association accounted for $18.18bn, while the International Bank for Reconstruction and Development was owed $1.36bn.
The African Development Bank was owed $2.15bn and the African Development Fund $1.02bn, with additional balances due to institutions such as the Islamic Development Bank and the International Fund for Agricultural Development.
Bilateral creditors accounted for $6.29bn, or 12.97 per cent of external debt. China’s Exim Bank represented the largest share within this category at $4.82bn. Other bilateral lenders include France, Japan, India and Germany. Loans from the China Development Bank stood at $423.51m.
Commercial borrowings also remain significant. Eurobonds accounted for $17.32bn, representing 35.74 per cent of total external debt. Additional syndicated project loans and a facility from Deutsche Bank brought further commercial exposure of about $1.45bn.
Domestic debt maintains majority share
Despite the steady rise in external borrowings, domestic debt continues to account for a larger portion of Nigeria’s public debt. As of September 30, 2025, domestic obligations stood at N81.82tn, up from N80.55tn in June.
In dollar terms, domestic debt increased from $52.67bn to $55.47bn within the quarter.
Domestic borrowings now represent 53.37 per cent of total debt, compared to 52.86 per cent three months earlier. The composition of domestic instruments reflects a heavy concentration in Federal Government securities.
FGN Bonds remain the dominant instrument, amounting to N61.99tn, or 79.67 per cent of the Federal Government’s domestic debt stock. Of this figure, N60.64tn comprises naira-denominated bonds, while N1.35tn represents dollar-denominated bonds converted into naira.
Nigerian Treasury Bills stood at N12.68tn, accounting for 16.30 per cent of domestic debt. Other instruments include FGN Sukuk valued at N1.29tn, FGN Savings Bonds at N97.46bn and Green Bonds at N62.36bn.
Promissory notes totalled N1.69tn across both naira and foreign currency denominations.
The DMO clarified that domestic debt data for 35 states and the Federal Capital Territory were captured as of September 30, 2025, while Rivers State’s domestic debt figures were as of June 30, 2025.
Policy shift toward sustainable financing
The upward movement in Nigeria’s public debt comes amid government assurances of a recalibrated financing framework. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has reiterated that the Federal Government is repositioning its funding strategy to reduce exposure to high-cost external borrowing.
Speaking at the G-24 Technical Group Meeting in Abuja, Edun emphasised a pivot toward private capital mobilisation, domestic reforms and diversified funding instruments.
According to him, the evolving approach aligns with global development finance trends that prioritise blended finance, concessional funding windows and innovative structures to support growth without escalating debt vulnerabilities.
Analysts note that while Nigeria’s public debt remains within certain international benchmarks relative to GDP, debt servicing costs continue to exert pressure on fiscal space.
The balance between maintaining macroeconomic stability and financing infrastructure, social services and economic reforms will remain central to fiscal management in the coming quarters.
With domestic instruments still accounting for the majority share, authorities may continue to leverage the local capital market to meet funding needs.
However, exchange rate movements, global interest rate trends and investor appetite for emerging market debt will influence the trajectory of both external and domestic obligations.
As Nigeria’s public debt edges higher, the policy emphasis will likely shift toward improving revenue mobilisation, enhancing expenditure efficiency and deepening structural reforms to ensure that borrowing translates into measurable economic gains rather than mounting fiscal strain.
