Nigeria’s Public Debt Rises to ₦152.4 Trillion by Mid-2025 Amid Currency Pressures and Fiscal Strain
Nigeria’s total public debt surged to ₦152.4 trillion as of June 30, 2025, marking a ₦3.01 trillion increase from the ₦149.39 trillion recorded in March, according to new data released by the Debt Management Office (DMO). The figure represents a 2.01% quarterly rise, driven largely by a weaker naira and ongoing fiscal pressures. In dollar terms, the debt stock rose from $97.24 billion to $99.66 billion, reflecting a 2.49% increase, as both federal and state governments continue to rely heavily on borrowing to finance budget shortfalls.
Nigeria’s external debt rose modestly to $46.98 billion (₦71.85 trillion) in June, compared to $45.98 billion (₦70.63 trillion) in March. The DMO report revealed that multilateral lenders remain the country’s biggest creditors, accounting for 49.4% of total external obligations. The World Bank, through its International Development Association (IDA), tops the list with $18.04 billion in outstanding loans. Bilateral lenders such as China’s Exim Bank ($4.91 billion), France, Japan, India, and Germany collectively account for another $6.20 billion. Commercial borrowings—mainly Eurobonds—make up $17.32 billion, highlighting Nigeria’s growing exposure to international capital market fluctuations.
On the domestic front, total obligations climbed to ₦80.55 trillion, up from ₦78.76 trillion in March. Federal Government bonds dominate the local portfolio, standing at ₦60.65 trillion, or 79.2% of the total domestic debt. This includes ₦36.52 trillion in naira-denominated bonds, ₦22.72 trillion in securitised Ways and Means advances, and ₦1.40 trillion in dollar bonds. Other instruments include treasury bills (₦12.76 trillion), Sukuk bonds (₦1.29 trillion), and smaller green and savings bonds. The rising dependence on securitised Ways and Means funding underscores Nigeria’s fiscal distress, as the government continues to plug budget gaps through borrowing.
The Federal Government accounted for ₦141.08 trillion, representing 92.6% of the total debt stock, while states and the Federal Capital Territory (FCT) collectively owed ₦11.32 trillion (7.4%). For the first time in 2025, the DMO disclosed a detailed state-level breakdown showing that subnational external debts reached $4.81 billion (₦7.36 trillion), alongside ₦3.96 trillion in domestic liabilities. This reflects the widening fiscal gap across states as many grapple with limited revenue generation and high wage obligations.
The DMO clarified that foreign debts were converted using the Central Bank’s exchange rate of ₦1,529.21 per dollar as of June 30, 2025, a weaker rate that inflated the naira value of foreign loans. This currency effect, combined with rising debt servicing costs, continues to amplify Nigeria’s fiscal vulnerability. While the country’s debt-to-GDP ratio remains within international benchmarks, analysts warn that the rapid growth in borrowing, weak revenue performance, and mounting interest obligations pose sustainability risks. Experts have urged the government to broaden its tax base, curb spending inefficiencies, and diversify revenue sources to avoid further debt escalation and ensure long-term economic stability.
source: Nairametrics