Nigeria’s public debt increases to N153.29 trillion due to new domestic and foreign borrowings
Nigeria’s total public debt increased to N153.29 trillion as of September 30, 2025, confirming the steady build-up of domestic and external debt within one quarter. According to the latest data released by the Debt Management Office (DMO), the country’s outstanding debt rose to N153.29 trillion in September from N152.4 trillion recorded at the end of June, reflecting an increase of N893.87 billion quarter-on-quarter.
Dollar-denominated debt exceeds $103 billion
The upward trend was also noticeable on a dollar basis. Nigeria’s total public debt increased from $99.66 billion in June to $103.94 billion in September, an increase of $4.28 billion and an expansion of 4.29% over the three-month period.
Of the total in September, external debt accounted for $48.46 billion, equivalent to N71.48 trillion, or 46.63% of the total public debt. This compares with $46.98 billion as of June 30, when external debt accounted for 47.14 percent of the total. External debt increased by $1.48 billion during the quarter.
However, domestic debt increased even more rapidly in dollar terms. Sales rose $2.8 billion from $52.67 billion in June to $55.47 billion in September. In Naira terms, domestic borrowing increased from 80.55 trillion Naira to 81.82 trillion Naira over the same period. As a result, domestic debt accounted for 53.37% of total public debt in September, slightly higher than the 52.86% recorded three months earlier.
The DMO noted that the external debt amount for September was converted at the official exchange rate set by the Central Bank of Nigeria: $1 = 1,474.85 Naira. In contrast, the June figure was calculated using an exchange rate of N1,529.2105 per dollar. The relative appreciation of the naira in September contributed to the easing of the naira value of external debt.
Multilateral financial institutions continue to dominate
A breakdown of outstanding external debt reveals that multilateral institutions continue to be Nigeria’s largest creditors. Loans from the World Bank Group, African Development Bank Group and other multilateral institutions amounted to $23.41 billion, accounting for 48.31% of total external debt.
Within this category, the International Development Association owes $18.18 billion and the International Bank for Reconstruction and Development $1.36 billion. It owed $2.15 billion to the African Development Bank and $1.02 billion to the African Development Fund. Other multilateral creditors include the Islamic Development Bank and the International Fund for Agricultural Development.
Bilateral debt was $6.29 billion, accounting for 12.97% of external debt. The Export-Import Bank of China remained the largest bilateral lender at $4.82 billion, with loans also coming from France, Japan, India and Germany. China Development Bank had a debt of $423.51 million.
Commercial borrowing remained an important part of the external debt profile. Eurobonds amounted to $17.32 billion, accounting for 35.74% of total external debt. Additional commercial debt includes a $1.45 billion syndicated project loan and financing from Deutsche Bank.
Federal instruments control domestic debt
On the domestic front, federal instruments remain the backbone of the debt structure. As of September 30, 2025, Federal Government of Nigeria (FGN) bonds amounted to N61.99 trillion, accounting for 79.67 per cent of the federal government’s domestic debt. Of these, 60.64 trillion naira-denominated bonds are naira-denominated bonds, and 1.35 trillion naira-denominated dollar bonds are converted into naira.
The total value of Nigeria’s Treasury Bills is N12.68 trillion, accounting for 16.30% of the national debt. FGN Sukuk amounted to N1.29 trillion while FGN Savings Bonds and Green Bonds amounted to N97.46 billion and N62.36 billion respectively. Promissory notes denominated in naira and foreign currencies totaled N1.69 trillion.
The DMO added that the domestic debt data for the 35 states and the Federal Capital Territory was updated on September 30, 2025, while the figures for Rivers State were as of June 30, 2025.
Policy change from expensive external borrowing
Even as debt levels continue to rise, the federal government has signaled a readjustment of its borrowing strategy. The Minister of Finance and Coordinating Economic Affairs, Wale Edun, recently indicated that Nigeria is moving away from over-reliance on expensive external loans.
Speaking at the G24 Expert Group meeting in Abuja, Edun said the government is purposefully moving towards a more resilient growth framework, anchored by domestic reforms, mobilization of private capital and diversified financing instruments.
He said this new approach is in line with evolving global development finance priorities, which emphasize innovative financing models, mixed instruments and the expansion of concessional financing facilities, particularly among developing countries.
But the latest figures highlight the delicate balancing act facing policymakers. This means managing rising debt levels and changing financing strategies while maintaining fiscal management and development financing needs in a volatile global economic environment.
