The federal government accounts for N141.08 trillion, or 92.6 per cent, as Nigeria’s total public debt stock rose to N152.4 trillion on June 30, 2025.
This is according to the latest disclosure by the Debt Management Office (DMO).
A cursory look at the debt office report shows that Nigeria’s public debt worsened by N3.01 trillion from N149.39 trillion recorded at the end of March 2025, representing a 2.01 per cent rise within three months.
In dollar terms, the debt profile grew from $97.24 billion to $99.66 billion, reflecting a 2.49 per cent increase.
A breakdown of the debt profile shows that Nigeria’s external debt climbed to $46.98 billion, or ₦71.85 trillion, in June, from $45.98 billion, or ₦70.63 trillion, in March.
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Also, domestic debt rose to ₦80.55 trillion in June, up from ₦78.76 trillion in March, representing a 2.27 per cent increase.
Breakdown of FG’s Debt Obligation
Of the total debt stock as of June, the federal government owed ₦141.08 trillion.
A breakdown shows that it owned ₦64.49 trillion in external borrowing and ₦76.59 trillion in domestic borrowing.
The subnational governments, comprising the 36 states and the Federal Capital Territory, owed a combined N11.32 trillion, representing 7.4 per cent of total public debt.
Of this, $4.81 billion, or N7.36 trillion, represents external borrowing, while N3.96 trillion accounts for domestic borrowing.
Domestic Borrowing Instruments
The portfolio was dominated by federal government bonds, which stood at N60.65 trillion, accounting for 79.2 per cent of the total domestic debt.
It includes ₦36.52 trillion in naira-denominated bonds, ₦22.72 trillion in securitised Ways and Means advances from the Central Bank of Nigeria (CBN) and ₦1.40 trillion in dollar bonds.
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Other components included treasury bills worth ₦12.76 trillion or 16.7 per cent, Sukuk bonds valued at ₦1.29 trillion, savings bonds of ₦91.53 billion, green bonds of ₦62.36 billion, and promissory notes of ₦1.73 trillion.
The securitisation of CBN’s Ways and Means lending, essentially converting overdrafts into long-term debt, highlights the fiscal pressures facing President Bola Tinubu’s administration, even as the apex bank seems to be tightening monetary discipline to restore investor confidence.
Largest creditor
The World Bank remained Nigeria’s single largest external creditor, as the country owed the bank $18.04 billion in debt, mostly through the International Development Association.
It represents about 38 per cent of total external obligations, while overall, multilateral lenders account for $23.19 billion, or 49.4 per cent, of the external portfolio.
Other multilateral partners include the African Development Bank, the International Monetary Fund, and the Islamic Development Bank.
The DMO stated that bilateral loans contributed $6.20 billion, led by the Export-Import Bank of China with $4.91 billion, while smaller exposures were owed to France, Japan, India, and Germany.
It stated further that commercial borrowings, mostly Eurobonds, stood at $17.32 billion, accounting for 36.9 per cent of the external debt.
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Nigeria also owed $268.9 million under syndicated facilities and commercial bank loans.
Persistent Fiscal Pressures
The country’s heavy exposure to Eurobonds could heighten its vulnerability to global market shocks, while dependence on concessional multilateral loans points to persistent fiscal fragility and limited access to cheaper credit.
The DMO’s latest data underscore the government’s growing reliance on both domestic and external borrowing to plug fiscal deficits, even as revenue reforms and foreign exchange liberalisation continue to reshape the macroeconomic landscape.
Pinnacle Daily reports that Nigeria’s rising debt comes amid ongoing efforts by the federal government to boost non-oil revenues, curb inflation, and stabilise the naira under its economic reform agenda.
While the DMO insists that the debt remains within sustainable limits, there have been concerns over the cost of borrowing and exchange rate adjustments.
Pinnacle Daily reported lately that President Tinubu has sought the approval of the lawmakers to secure approximately $2.3 billion in external loans to cover the 2025 budget deficit and refinance maturing Eurobonds, which will further raise Nigeria’s debt profile.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
