Nigeria's Public Debt Skyrockets to N159.28 Trillion, Imposing N66,250 Burden Per Citizen
Nigeria's total public debt has escalated dramatically to N159.28 trillion as of December 2025, placing a significant financial burden of N66,250 on every citizen. This alarming increase reflects fresh domestic and external borrowings under President Bola Tinubu's administration, compounding the economic strain on Nigerians amid escalating living costs and inflationary pressures.
Quarterly Debt Surge Highlights Persistent Borrowing Trend
According to data released by the Debt Management Office on April 14, 2026, Nigeria's public debt grew by N5.98 trillion, representing a 3.9 percent increase from the N153.29 trillion recorded at the end of September 2025. Year-on-year, the debt expanded by N14.61 trillion, marking a substantial 10.1 percent rise from the N144.67 trillion documented in December 2024.
Both domestic and external loans contributed to this quarterly escalation. External debt increased from N71.48 trillion to N74.43 trillion, a rise of N2.95 trillion or 4.1 percent. Meanwhile, domestic debt climbed from N81.82 trillion to N84.85 trillion, an increase of N3.03 trillion or 3.7 percent. Domestic debt continues to dominate the composition at 53.27 percent, with external debt accounting for 46.73 percent, maintaining a nearly unchanged structure from the previous quarter.
In dollar terms, the total debt expanded from $103.94 billion to $110.97 billion. The naira valuation of external debt was partially mitigated by exchange-rate fluctuations, as the DMO utilized rates of N1,474.85 per dollar in September and N1,435.26 per dollar in December for its calculations.
Domestic Borrowing Emerges as Primary Driver of Annual Debt Accumulation
Over the full year, domestic borrowing was the principal factor behind the debt surge, escalating by 14.1 percent from N74.38 trillion to N84.85 trillion. External debt experienced a more moderate growth of 5.9 percent, reaching N74.43 trillion. The Federal Government remains the dominant borrower, holding N80.49 trillion in domestic debt and N66.27 trillion in external debt. States and the Federal Capital Territory collectively owe N4.36 trillion domestically and N8.16 trillion externally.
The Federal Government's domestic borrowing alone increased significantly, reinforcing its role as the chief driver of national debt accumulation. This shift slightly altered the debt composition, with domestic debt's share rising from 51.41 percent to 53.27 percent, while external debt's proportion decreased from 48.59 percent.
Legislative Oversight and Transparency in Borrowing Processes
Speaking at the IMF Spring Meetings in Washington, DC, DMO Director-General Patience Oniha emphasized that Nigeria's borrowing procedures are rigorously controlled. Under the Fiscal Responsibility Act and the DMO Act, every loan, whether domestic or external, must obtain National Assembly approval before being contracted.
"Those requests are presented to them for a detailed analysis... and they invite us to come and defend it," Oniha explained. "If they are not satisfied, they tell you to go back and provide more information. That is only when the loan can be approved and contracted."
She noted that these public hearings, sometimes televised, enhance investor confidence by demonstrating strict adherence to legal frameworks. The DMO also publishes regular debt data and reports to parliamentary committees on debt stock, servicing obligations, and future projections.
Calls for Enhanced Scrutiny and Revenue-Focused Strategies
Oniha acknowledged areas requiring improvement, citing frequent turnover of lawmakers, time constraints, and the increasing complexity of debt instruments as factors that can weaken oversight, particularly when approvals are rushed at the fiscal year's end. She advocated for regular capacity-building programs for parliamentarians, including partnerships with international institutions like the World Bank and IMF to expose them to global best practices.
Ultimately, she urged a broader dialogue on balancing debt with developmental goals. "We should be looking at how debt can affect fiscal space, how it can support development, and at what point we should begin to focus more on revenues instead of continuous borrowing," Oniha stated.
As Nigeria's debt profile continues its upward trajectory, these figures underscore a sobering reality: each new loan directly amplifies the burden shouldered by ordinary citizens. With domestic borrowing remaining predominant and demands for smarter revenue strategies growing louder, the path forward necessitates both fiscal discipline and genuine accountability.
Notably, recent IMF data listing the ten African countries with the highest outstanding debt to the institution in March 2026 did not include Nigeria, raising questions about its current borrowing strategy and exposure to IMF financing. This absence highlights how several African economies continue to rely on IMF support to stabilize their finances amid persistent fiscal pressures, currency volatility, and external shocks.
