Nigeria’s Public Debt Climbs to N149.39 Trillion in Q1 2025, FGN Bonds Dominate Domestic Obligations
Nigeria’s total public debt surged to N149.39 trillion at the end of the first quarter of 2025, marking a N4.72 trillion or 3.3 percent increase from N144.67 trillion recorded in December 2024, according to the Debt Management Office (DMO). The figure represents the combined debts of the federal government, the 36 states, and the Federal Capital Territory (FCT).
The federal government remains the largest contributor, with N74.89 trillion in domestic debt. Of this, FGN Bonds dominate, accounting for N59.796 trillion or approximately 80 percent of the federal government’s domestic obligations. This includes N58.387 trillion in FGN Naira Bonds and N1.409 trillion in FGN US Dollar Bonds, highlighting a significant reliance on bond instruments for domestic borrowing.
Among other federal debt instruments, Nigerian Treasury Bills (NTBs) followed with N12.699 trillion or 16.96 percent. FGN Sukuk contributed N992.56 billion (1.33 percent), FGN Savings Bonds stood at N82.61 billion (0.11 percent), while FGN Green Bonds, though the least, were poised to grow due to the recent issuance of the Series III Sovereign Green Bond, which saw strong investor interest and raised N47.335 billion at an 18.95 percent coupon rate.
Promissory Notes, another key component, made up 1.74 percent of federal domestic debt, totaling N1.301 trillion. These included N271.42 billion in local currency and N1.029 trillion in foreign currency-denominated notes. The overall growth in debt continues to reflect Nigeria’s strategy of using a diverse mix of financial instruments to manage fiscal gaps.
At the subnational level, Jigawa State maintained its position as the least indebted state, with just over N1 billion in obligations. In stark contrast, Lagos State remains Nigeria’s most indebted, with liabilities totaling N874 billion. Rivers and Delta followed with N364.39 billion and N204.72 billion respectively, underscoring regional disparities in debt accumulation and fiscal management.
Source: Arise