Nigeria’s total public debt climbed to ₦149.39 trillion at the end of March 2025, reflecting a 3.26% increase from the previous quarter, according to the latest figures released by the Debt Management Office (DMO). The report also shows a 22.78% year-on-year rise, highlighting Nigeria’s persistent reliance on debt to fund budget shortfalls amidst sluggish revenue growth and sustained fiscal pressures.
A breakdown of the Q1 2025 debt profile reveals that the increase was primarily driven by a surge in domestic borrowing, as the federal government leaned heavily on naira-denominated instruments to cushion against foreign exchange (FX) risks and climbing global interest rates. Domestic debt rose by 5.89% to ₦78.76 trillion, up from ₦74.36 trillion in the preceding quarter—an increase of ₦4.4 trillion.
Meanwhile, external debt recorded a marginal uptick, rising by 0.49% quarter-on-quarter to ₦70.63 trillion, representing an addition of ₦344.6 billion. On a year-on-year basis, external debt grew by 19.97%, reflecting the combined impact of new borrowings and exchange rate adjustments.
The DMO report noted that the debt structure remains relatively balanced, with domestic debt accounting for 52.72% and external debt making up 47.28% of the total debt stock. The Federal Government holds the lion’s share of domestic obligations at ₦74.89 trillion (50.13% of total public debt), while state governments and the Federal Capital Territory (FCT) collectively account for ₦3.87 trillion (2.59%).
Analysts attribute part of the rising debt burden to exchange rate volatility, which slightly impacted the valuation of foreign obligations. The naira depreciated modestly during the period, weakening from ₦1,535.32/$ in December 2024 to ₦1,536.31/$ by March 2025, a 0.1% decline that nonetheless affected external debt figures.
When converted to dollars, Nigeria’s total public debt stood at $97.24 billion at the end of Q1 2025, marking a 3.19% increase from $94.23 billion in Q4 2024, and a 6.32% rise from the $91.46 billion recorded in the same period in 2024.
The continued expansion in Nigeria’s debt profile raises concerns about long-term fiscal sustainability, especially as debt servicing obligations climb in tandem with the growing stock.
