LAGOS – Nigeria’s total public debt reached N159.28 trillion in December 2025, according to the Debt Management Office (DMO). This marks a 3.9% increase from the N153.29 trillion recorded in September 2025.
The N5.99 trillion quarterly surge reflects intensified borrowing by the Federal Government and states. Funds were primarily raised through domestic bond markets and external Eurobond issuances to bridge fiscal gaps.
Domestic debt remains the dominant component, totaling N84.85 trillion. The Federal Government holds N80.49 trillion of this figure, while states and the FCT account for the remaining N4.36 trillion.
External debt climbed to N74.43 trillion, equivalent to $51.86 billion. This rise was driven by new international credit and currency fluctuations affecting the valuation of existing foreign obligations.
The annual debt stock grew by 10.1% throughout 2025. Despite the climb, the 2026 debt-to-GDP ratio is projected at 34.5%, remaining within the government’s established medium-term fiscal framework.
The recent surge in public debt occurs as the Nigerian government navigates a complex transition toward macroeconomic stability. While the nominal debt figure has crossed the N159 trillion mark, the broader economic context is defined by a shift in monetary policy and ambitious fiscal targets for the 2026 cycle.
Comparative Analysis of Nigeria’s Public Debt (Q3 vs. Q4 2025)
| Debt Category | Sept 2025 (₦ Trillion) | Dec 2025 (₦ Trillion) | Q4 Change (₦) |
| Total Public Debt | 153.29 | 159.28 | +5.99T |
| Domestic Debt | 81.82 | 84.85 | +3.03T |
| — Federal Govt | 77.42 | 80.49 | +3.07T |
| — States & FCT | 4.40 | 4.36 | -0.04T |
| External Debt | 71.47 | 74.43 | +2.96T |
Source: DMO
