Nigeria’s total public debt has increased to N153.29 trillion as of September 30, 2025, reflecting the continued increase in domestic and external debt in the third quarter of the year, according to figures released by the Debt Management Office (DMO) on Friday.
According to the data, the country’s outstanding debt rose from N152.4 trillion recorded on June 30, 2025, representing an increase of N893.87 billion quarter-on-quarter.
In dollar terms, Nigeria’s total public debt expanded from $99.66 billion in June to $103.94 billion at the end of September, an increase of $4.28 billion (4.29%) over the three-month period.
A breakdown of the figures shows that external debt was $48.46 billion (equivalent to 71.48 trillion naira), accounting for 46.63% of total public debt as of September 2025.
This represents an increase of $1.48 billion during the quarter compared to $46.98 billion at the end of June, when external debt accounted for 47.14% of total debt.
However, domestic debt recorded a sharp increase in dollar terms, increasing by $2.8 billion from $52.67 billion in June to $55.47 billion in September. In Naira terms, the domestic debt stood at 81.82 trillion Naira in September, up from 80.55 trillion Naira three months ago.
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As a result, as of the end of September, domestic borrowing accounted for 53.37% of total public debt, slightly higher than the 52.86% recorded in June.
The DMO explained that the external debt figures for September were converted using the Central Bank of Nigeria’s official exchange rate of N1,474.85 to the dollar, compared to N1,529.2105 applicable in June. The relative appreciation in the exchange rate in September eased the value of the external debt naira.
Further analysis of external debt outstanding in September shows that multilateral creditors remain Nigeria’s largest lenders. 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 had $18.18 billion and the International Bank for Reconstruction and Development had $1.36 billion. The African Development Bank has debts of $2.15 billion and the African Development Fund $1.02 billion, with other institutions such as the Islamic Development Bank and the International Fund for Agricultural Development covering the balance.
Bilateral debt totaled $6.29 billion, accounting for 12.97% of external debt. The Export-Import Bank of China accounted for $4.82 billion, with France, Japan, India and Germany also among Nigeria’s creditors. Loans from the China Development Bank amounted to $423.51 million.
Commercial borrowing remains high, with Eurobonds accounting for $17.32 billion, or 35.74%, of external debt outstanding. Syndicated project financing and a loan from Deutsche Bank added $1.45 billion to the commercial component.
On the domestic front, federal instruments continued to prevail. 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 outstanding. Of this, 60.64 trillion naira bonds were Naira-denominated bonds and 1.35 trillion Naira were U.S. dollar bonds converted into Naira.
Nigeria’s Treasury bills amounted to N12.68 trillion, accounting for 16.30% of the national debt. The value of FGN Sukuk was N1.29 trillion, while the value of FGN Savings Bonds and Green Bonds was N97.46 billion and N62.36 billion respectively. The promissory notes covered both naira and foreign currency denominations, totaling N1.69 trillion.
The DMO noted that the domestic debt data for the 35 states and the Federal Capital Territory is as of September 30, 2025, while the figures for Rivers State are as of June 30, 2025.
While domestic debt remains a large proportion of Nigeria’s total public debt, the data also confirms that external borrowing increased during the quarter.
Earlier, Finance Minister and Coordinating Minister for the Economy Wale Edun said the country was prioritizing a more sustainable growth strategy and deliberately reducing its dependence on expensive external loans.
“Nigeria is purposefully moving away from a model that relies heavily on expensive external borrowing to a more resilient growth framework that leverages domestic reforms, private capital and diversified financing options,” Edun said at the opening session of the 24-nation Intergovernmental Expert Group meeting in Abuja.
He added that this approach is in line with global development finance trends that prioritize innovative financing mechanisms, blended finance and expanded concessional lines.
