Nigeria’s Public Debt Stock Surges to N159.28 Trillion as Domestic Borrowing Hits Record High

DMO data shows Nigeria's total public debt rose 10.1% in one year to reach N159.28 trillion, with domestic borrowing accounting for the largest share.

By: AXL Media

Published: Apr 15, 2026, 6:00 AM EDT

Source: Information for this report was sourced from Leadership

A Steady Ascent in National Obligations

Nigeria’s fiscal trajectory continues to face significant pressure as the total public debt stock climbed to N159.28 trillion as of December 31, 2025. According to the latest figures from the Debt Management Office (DMO), this represents a 10.1% increase over the N144.67 trillion recorded at the end of 2024. The data highlights a persistent upward trend in borrowing, with the debt stock rising by N14.61 trillion in a single year as the federal government navigates complex economic headwinds and infrastructure funding requirements.

Domestic Debt Emerges as the Primary Driver

A granular look at the DMO report shows that domestic debt remains the dominant component of Nigeria’s financial obligations, making up 53.27% of the total. Local debt surged to N84.85 trillion by December 2025, a substantial rise from the N74.38 trillion recorded a year earlier. This 14.1% year-on-year growth underscores a strategic shift or continued necessity for the government to tap into the domestic market. The federal government holds the lion's share of this local burden at N80.49 trillion, while states and the Federal Capital Territory (FCT) account for approximately N4.36 trillion.

External Borrowing and Currency Considerations

On the external front, Nigeria’s debt stood at N74.43 trillion ($51.86 billion) at the close of 2025. This reflects a moderate year-on-year increase from N70.29 trillion ($45.78 billion) in 2024. The DMO utilized an official Central Bank of Nigeria (CBN) exchange rate of $1/N1435.25 for these conversions. While external debt grew by $16.75 billion in dollar terms over the year, its proportion relative to the total debt stock declined marginally, falling to 46.73% compared to 48.59% in the previous year.