Nigeria’s total public debt has surged to a staggering N152.4 trillion as of June 30, 2025, according to the latest data from the Debt Management Office (DMO), marking a N3.01 trillion increase from the N149.39 trillion recorded at the end of March 2025. This represents a 2.01 percent rise over three months. In dollar terms, the nation’s debt grew from $97.24 billion to $99.66 billion, reflecting a 2.49 percent increase.
The figures highlight the government’s increasing reliance on both domestic and external borrowing to cover fiscal deficits, even as the country continues efforts toward revenue reforms and foreign exchange liberalisation. The data also sheds light on the economic and fiscal challenges facing the current administration.
The external debt portion of Nigeria’s public debt climbed to $46.98 billion (N71.85 trillion) in June 2025, a rise from $45.98 billion (N70.63 trillion) in March 2025. The World Bank remains Nigeria’s largest external creditor, with an outstanding loan of $18.04 billion, primarily through the International Development Association (IDA). This represents approximately 38 percent of Nigeria’s total external debt obligations.
According to the DMO, “Multilateral lenders, including the African Development Bank, International Monetary Fund, and the Islamic Development Bank, together account for $23.19 billion, or 49.4 percent of the external debt.” Bilateral loans, mainly from the Export-Import Bank of China, total $6.20 billion, with smaller loans from France, Japan, India, and Germany. Commercial borrowings, mainly in the form of Eurobonds, stand at $17.32 billion, making up 36.9 percent of external debt.
While Eurobonds offer immediate capital, they expose Nigeria to potential global market shocks. Additionally, the country’s dependence on concessional loans from multilateral lenders underscores the continued fiscal vulnerability and the limited access to affordable credit.
Domestically, Nigeria’s total debt rose to N80.55 trillion in June 2025, an increase of N1.79 trillion from March 2025. The bulk of this domestic debt is in the form of Federal Government bonds, which make up N60.65 trillion, or 79.2 percent of the total. Of this, N36.52 trillion is in naira-denominated bonds, with N22.72 trillion in securitised “Ways and Means” advances from the Central Bank of Nigeria (CBN), and N1.40 trillion in dollar bonds. Treasury bills are valued at N12.76 trillion, while other instruments like Sukuk bonds and savings bonds bring the total to N80.55 trillion.
The securitisation of the CBN’s Ways and Means lending, effectively converting temporary overdrafts into long-term debt, is indicative of the fiscal pressures faced by the current administration. The move is seen as part of efforts to regain monetary discipline and restore investor confidence.
According to the DMO, the Federal Government accounts for N141.08 trillion, or 92.6 percent of the total public debt stock. This includes N64.49 trillion in external debt and N76.59 trillion in domestic obligations. The remaining N11.32 trillion (7.4 percent) is owed by subnational governments, including the 36 states and the Federal Capital Territory, with N7.36 trillion in external debt and N3.96 trillion in domestic liabilities.
While the DMO has insisted that Nigeria’s debt is still within sustainable limits, there is growing concern over the costs of borrowing, especially considering the country’s exchange rate challenges and ongoing economic reforms aimed at boosting non-oil revenues and curbing inflation.
Nigeria’s escalating debt burden occurs as the Federal Government intensifies efforts to improve non-oil revenues, curb inflation, and stabilise the naira as part of its broader economic reform agenda. The government’s fiscal policy aims to reduce borrowing costs and enhance long-term financial stability, but the heavy debt burden continues to raise alarms over the country’s fiscal health and its vulnerability to external shocks.
while the DMO maintains that the current debt levels are manageable, the rising cost of debt servicing and reliance on external creditors particularly multilateral lenders and Eurobond markets could pose significant challenges for Nigeria’s economic trajectory in the coming years.
