Nigeria's total public debt has surged to N159.35 trillion as of March 31, 2026, according to the latest data from the Debt Management Office (DMO). This represents a significant increase of 12% from the N142.32 trillion recorded in December 2025.
The DMO's report, released on Friday, shows that the debt stock includes the federal government, state governments, and the Federal Capital Territory (FCT). The increase is attributed to new domestic and external borrowings, as well as the depreciation of the naira, which raised the naira value of external debt.
Breakdown of the Debt
The DMO data reveals that domestic debt stands at N95.2 trillion, accounting for about 60% of the total debt. External debt is N64.15 trillion, representing the remaining 40%. The external debt includes loans from multilateral institutions, bilateral creditors, and commercial sources.
Compared to the previous quarter, domestic debt increased by N8.5 trillion, while external debt rose by N8.53 trillion. The rise in external debt is largely due to the naira's depreciation against major currencies, as the dollar equivalent of the debt remains relatively stable.
Implications for the Economy
Economists have expressed concerns over the growing debt profile, urging the government to focus on revenue generation and fiscal discipline. According to Dr. Muda Yusuf, a prominent economist and CEO of the Centre for the Promotion of Private Enterprise (CPPE), "The rising debt stock is a major concern, especially with the high cost of servicing. The government must prioritize investments that will boost economic growth and expand the tax base."
The debt service-to-revenue ratio remains high, with a significant portion of the federal budget allocated to servicing existing debts. This limits the government's ability to invest in critical infrastructure and social programs.
Government's Response
In response, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, assured Nigerians that the government is committed to reducing the debt burden through improved revenue collection and prudent fiscal management. He stated, "We are working on strategies to increase non-oil revenues and ensure that every borrowing is tied to productive investments that will generate returns."
The government has also hinted at plans to restructure some of its external debts to extend maturities and reduce interest costs. However, analysts argue that without significant reforms in the oil sector and tax administration, the debt trajectory may remain unsustainable.
