Nigeria's Public Debt Rises to N153.29 Trillion in Third Quarter 2025
The Debt Management Office (DMO) has announced that Nigeria's total public debt reached N153.29 trillion as of September 30, 2025. This figure marks a significant increase from previous quarters, highlighting ongoing fiscal challenges in the country.
Breakdown of Debt Components
According to the DMO, the public debt stock includes both domestic and external borrowings by the federal government, the 36 states, and the Federal Capital Territory (FCT). The data reveals that domestic debt stood at N81.81 trillion, equivalent to approximately $55.47 billion, while external debt was N71.47 trillion, or about $48.46 billion.
The federal government holds the largest share of domestic debt, which rose to N77.81 trillion in the third quarter of 2025, up from N76.58 trillion in the second quarter. At the subnational level, domestic debt owed by states and the FCT increased slightly from N3.96 trillion in June to N4 trillion in September.
Increase from Previous Quarter
The latest debt figure represents a N900 billion increase, or 0.59 per cent, compared to the N152.39 trillion recorded in June 2025. This upward trend underscores the persistent pressures on Nigeria's public finances, driven by efforts to fund infrastructure projects and address revenue shortfalls.
Budget Deficit and Fiscal Concerns
Nigeria's 2026 budget projects a deficit of N23.85 trillion, which is equivalent to 4.28 per cent of the gross domestic product (GDP). Analysts note that rising debt levels reflect the government's attempts to bridge funding gaps, but public debate remains sensitive due to concerns over budget deficits and revenue allocation.
DMO Clarifies Past Debt Claims
In January 2025, the DMO refuted reports alleging that Nigeria's public debt surged from N21 trillion to N142 trillion under President Bola Tinubu. The agency clarified that the debt stock was N87 trillion when Tinubu assumed office, dismissing earlier figures as inaccurate.
Separately, a report released on May 17, 2025, by the National Orientation Agency (NOA) indicated that both federal and state governments had reduced their debt burdens, supported by increased disbursements from the Federation Account Allocation Committee (FAAC).
State-Level Debt Service Deductions
Legit.ng earlier reported that Nigeria's 36 states paid a combined N455.38 billion in foreign debt service deductions in 2025, according to figures from the National Bureau of Statistics. This amount marks a sharp rise from the N362.08 billion deducted in 2024, representing an increase of N93.30 billion or 25.77 per cent year on year.
In practical terms, a larger share of states' FAAC allocations was automatically deducted to service loans owed to external creditors, including the World Bank, IMF, China, and other multilateral and bilateral lenders.
