Nigeria’s Public Debt Hits ₦153.29 Trillion by September 2025 — DMO Raises Fiscal Sustainability Concerns

Nigeria’s total public debt rose to ₦153.29 trillion by the end of September 2025, reflecting a steady accumulation of liabilities across domestic and external sources, official data from the Debt Management Office have revealed. The increase represents a ₦893.87 billion rise from the ₦152.40 trillion recorded as of June 30, 2025, highlighting persistent borrowing amid fiscal and macroeconomic challenges.

In dollar terms, Nigeria’s debt stock expanded from $99.66 billion in June to $103.94 billion in September, an increase of $4.28 billion within the quarter. This translates to a 4.29 percent growth in dollar-denominated debt over the three-month period, driven by both new borrowings and valuation effects linked to exchange rate movements.

A breakdown of the figures shows that external debt stood at $48.46 billion, equivalent to ₦71.48 trillion, accounting for 46.63 percent of the country’s total public debt as of September. This represents an increase of $1.48 billion from the $46.98 billion recorded in June, when external obligations made up 47.14 percent of total debt. Although the share of external debt declined slightly, the absolute value continued to rise.

Domestic debt, however, grew more sharply in nominal terms. It increased from $52.67 billion in June to $55.47 billion in September, representing a $2.80 billion rise within the quarter. In naira terms, domestic debt climbed from ₦80.55 trillion to ₦81.82 trillion over the same period, accounting for 53.37 percent of Nigeria’s total public debt stock, up from 52.86 percent in June.

The DMO noted that the September external debt figures were converted using the Central Bank of Nigeria official exchange rate of ₦1,474.85 to the dollar, compared to ₦1,529.21 used for June data. The relatively stronger naira in September helped moderate the naira value of external debt, even as dollar liabilities increased.

Further analysis of Nigeria’s external debt composition shows that multilateral institutions remain the country’s largest creditors. Loans from the World Bank Group, the African Development Bank Group, and other multilateral agencies totalled $23.41 billion, representing 48.31 percent of total external debt. Within this category, the International Development Association accounted for $18.18 billion, while the International Bank for Reconstruction and Development stood at $1.36 billion. The African Development Bank and African Development Fund were owed $2.15 billion and $1.02 billion respectively.

Bilateral creditors accounted for $6.29 billion, or 12.97 percent of Nigeria’s external debt stock. China’s Exim Bank dominated this category with $4.82 billion, while France, Japan, India, and Germany were also listed among lenders. Loans from the China Development Bank amounted to $423.51 million.

Commercial borrowings also remained substantial. Eurobonds accounted for $17.32 billion, representing 35.74 percent of external debt. Additional commercial facilities, including syndicated project loans and a facility from Deutsche Bank, brought the non-Eurobond commercial total to $1.45 billion.

On the domestic side, Federal Government instruments dominated Nigeria’s debt profile. As of September 30, 2025, FGN Bonds stood at ₦61.99 trillion, accounting for 79.67 percent of the Federal Government’s domestic debt. Of this amount, ₦60.64 trillion were naira-denominated bonds, while ₦1.35 trillion were US dollar bonds converted to naira. Nigerian Treasury Bills amounted to ₦12.68 trillion, while FGN Sukuk, Savings Bonds, and Green Bonds collectively added over ₦1.4 trillion. Promissory notes totalled ₦1.69 trillion.

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has maintained that Nigeria is intentionally reducing reliance on costly external borrowing. Speaking at the G-24 Technical Group Meeting in Abuja, Edun said the government is pivoting toward a growth strategy anchored on domestic reforms, private capital mobilisation, and diversified financing instruments in line with evolving global development finance priorities.

Despite these assurances, the latest DMO figures underscore ongoing concerns about debt sustainability, especially as borrowing continues alongside rising debt-servicing costs and economic pressures facing households and businesses.