Nigeria’s Debt Management Office (DMO) has reported that the country’s total public debt climbed to N159.27 trillion at the end of the fourth quarter of 2025. This marks a 10 percent increase compared to N144.67 trillion recorded at the same period in 2024. The figure also reflects a quarterly rise of N5.98 trillion from N153.29 trillion in the third quarter of 2025.
The debt profile includes obligations of both the federal government and the 36 states, along with the Federal Capital Territory (FCT). According to the DMO, domestic debt accounted for N84.84 trillion, while external debt stood at N74.42 trillion. The office explained that the conversion of foreign debt into naira was based on the Central Bank of Nigeria’s official exchange rate of N1,435.25 per dollar as of December 31, 2025.
Domestic debt rose significantly from N74.38 trillion in December 2024, representing a 14.1 percent increase. The federal government’s share of domestic debt reached N80.48 trillion, up by N2.67 trillion from the previous quarter. States and the FCT contributed N4.36 trillion, a modest rise from N3.96 trillion in the third quarter.
External debt also expanded, climbing by N4.14 trillion from N70.29 trillion in December 2024. The federal government was responsible for N66.26 trillion of this amount, while states and the FCT owed N8.15 trillion.
The steady growth in Nigeria’s debt underscores the fiscal challenges facing the country. Rising domestic and external obligations highlight the strain on government finances and the need for effective debt management strategies. The DMO’s report provides a detailed breakdown, showing that both federal and subnational governments continue to rely heavily on borrowing to meet financial commitments.
With debt levels now at N159 trillion, policymakers face mounting pressure to balance economic growth with sustainable fiscal practices. The figures reflect not only the scale of Nigeria’s borrowing but also the broader economic environment shaped by currency fluctuations, revenue constraints, and global financial conditions. The report signals that debt sustainability will remain a critical issue for Nigeria in the coming years.
