Nigeria Public Debt Rises to N159.28 Trillion in 2025 as Domestic Borrowing Drives Growth – DMO Report

Nigeria’s total public debt climbed to N159.28 trillion as of December 31, 2025, according to fresh data released by the Debt Management Office (DMO). The increase reflects a steady rise in government borrowing, largely driven by domestic financing needs amid ongoing fiscal pressures.

The latest figures show that debt rose from N153.29 trillion in September 2025 to N159.28 trillion in December 2025, representing a quarterly increase of N5.98 trillion or 3.9%. In dollar terms, the debt stock also rose from $103.94 billion to $110.97 billion, highlighting continued exposure to exchange rate fluctuations.

On a year-on-year basis, Nigeria’s debt profile expanded significantly, rising from N144.67 trillion in December 2024 to N159.28 trillion in December 2025. This represents an increase of N14.61 trillion or 10.1%, underscoring the government’s growing reliance on borrowing to finance budget deficits and economic commitments.

A breakdown of the figures shows that domestic debt remains the dominant component, accounting for 53.27% of total public debt. Domestic obligations increased to N84.85 trillion, while external debt stood at N74.43 trillion, reflecting Nigeria’s continued dependence on local markets. The Federal Government holds the majority share of both domestic and external obligations.

Despite the rising debt burden, the DMO noted that the overall structure of Nigeria’s debt portfolio remains relatively stable. However, analysts continue to express concern over long-term debt sustainability, especially as borrowing remains a key tool for funding fiscal gaps and supporting government operations in a challenging economic environment.

source: nairametrics