…Public Borrowing Jumps N14.61tn In 2025 Fiscal Year
…FG, States Deepen Reliance On Local Loans
Daud Olatunji
Nigeria’s total public debt rose to N159.28 trillion as of December 31, 2025, reflecting a fresh borrowing surge that saw the country’s debt stock increase by N14.61 trillion within one year, according to new figures released by the Debt Management Office (DMO).
The latest data underscore the growing dependence of the federal and state governments on borrowing to fund budget deficits and meet fiscal obligations amid sustained revenue pressures.
The figure represents a significant rise from N144.67 trillion recorded at the end of 2024, translating to a year-on-year increase of 10.1 per cent. In dollar terms, Nigeria’s debt burden also climbed from $94.23 billion to $110.97 billion, marking an increase of $16.75 billion over the period.
On a quarterly basis, the debt profile rose from N153.29 trillion in September 2025 to N159.28 trillion in December 2025, indicating an additional N5.98 trillion or 3.9 per cent within three months.
Domestic borrowing dominates debt composition
The DMO report showed that domestic debt remained the largest component of Nigeria’s total debt stock, accounting for 53.27 per cent as of December 2025.
Domestic obligations rose from N74.38 trillion in December 2024 to N84.85 trillion in December 2025, representing a sharp increase of N10.47 trillion or 14.1 per cent year-on-year. It also grew by N3.03 trillion on a quarterly basis.
The Federal Government accounted for the bulk of domestic debt at N80.49 trillion, while states and the Federal Capital Territory (FCT) were responsible for N4.36 trillion collectively.
External debt also records steady growth
Nigeria’s external debt stood at N74.43 trillion at the end of December 2025, up from N70.29 trillion in the corresponding period of 2024, reflecting a year-on-year increase of N4.14 trillion.
In dollar terms, external obligations rose from $45.78 billion to $51.86 billion within the review period, indicating continued exposure to foreign borrowing and exchange rate pressures.
The Federal Government accounted for N66.27 trillion of external debt, while states and the FCT contributed N8.16 trillion.
Debt structure still tilted toward local borrowing
Despite sustained increases in both domestic and external obligations, Nigeria’s debt structure remained broadly stable, with domestic borrowing maintaining a slight lead.
Domestic debt accounted for 53.27 per cent of total public debt in December 2025, up from 51.41 per cent in December 2024. In contrast, the share of external debt declined marginally from 48.59 per cent to 46.73 per cent within the same period.
The DMO stated that the figures remain provisional and were converted using the Central Bank of Nigeria’s official exchange rate of N1,435.2571 to the dollar.
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