Nigeria’s Public Debt Hits ₦159.28 Trillion — Nearly Doubled in Two Years, Says DMO

Nigeria’s total public debt has surged to ₦159.28 trillion as of December 31, 2025, according to fresh data released by the Debt Management Office. The figure represents a quarter-on-quarter increase of ₦5.98 trillion (3.9%) from ₦153.29 trillion in September 2025, and a year-on-year jump of ₦14.61 trillion (10.1%) from ₦144.67 trillion in December 2024.

In dollar terms, the debt stock rose to $110.97 billion, reflecting a $7.04 billion increase within the quarter alone. On a per-capita basis, every Nigerian now carries approximately ₦66,250 in national debt — a figure that rises to over ₦724,000 when broader obligations are factored in.

The Breakdown

Domestic debt remains the larger component, accounting for 53.27% of total public debt at ₦84.85 trillion. External debt stands at ₦74.43 trillion (46.73%). The Federal Government is the dominant borrower: its domestic debt rose from ₦77.81 trillion to ₦80.49 trillion in the quarter, while states and the FCT added just ₦360 billion in domestic borrowing.

External debt increased from $48.46 billion to $51.86 billion in the quarter, partly moderated by exchange rate movements — the DMO applied an official rate of ₦1,435.26/$ for December 2025, compared to ₦1,474.85/$ for September.

Why It Matters

Nigeria’s debt has nearly doubled in two years. At the end of 2023, total public debt stood at approximately ₦87.9 trillion. Less than two years later, it has crossed ₦159 trillion. The government is borrowing more, faster, than at any point in recent history.

The IMF’s downgrade of Nigeria’s growth forecast to 4.1%, combined with rising inflation (15.38% in March), creates a painful squeeze: more debt, slower growth, and higher prices. Servicing this debt already consumes over 90% of revenue in some quarters. Every naira borrowed is a naira that must be repaid with interest — and the interest rates on domestic borrowing are punishing.

Finance Minister Wale Edun argues that rising crude production (1.8 million bpd) and the current oil price surge ($113/b for Nigerian crude) provide fiscal space. But oil revenues are volatile by nature, and the current premium is a direct result of the Iran war. If the conflict de-escalates and prices normalise, the fiscal cushion disappears — but the debt remains.

Sources: Punch, Channels TV, Guardian Nigeria