Nigeria’s Federal Government domestic debt stock climbed sharply to N77.81 trillion as of September 30, 2025, up from N70.41 trillion at the end of December 2024, according to the latest figures released by the Debt Management Office (DMO).
The N7.40 trillion rise over the nine-month period equates to a 10.52% increase, reflecting continued heavy reliance on local borrowing to cover fiscal deficits, refinance maturing obligations, and support budgetary spending requirements.
FGN Bonds remained the cornerstone of the portfolio, growing from N55.44 trillion (78.73% of total domestic debt) in December 2024 to N61.99 trillion (79.67%) by September 2025—an addition of N6.56 trillion. Within this category, Naira-denominated bonds expanded from N54.03 trillion to N60.64 trillion, while the Naira-equivalent value of domestic US Dollar bonds declined slightly from N1.41 trillion to N1.35 trillion due to exchange rate adjustments and portfolio shifts.
Nigerian Treasury Bills, the second-largest component, rose modestly from N12.35 trillion to N12.68 trillion, adding N332.39 billion, though their share of the total debt fell from 17.54% to 16.30% as longer-term bond issuances outpaced short-term instruments.
Other instruments showed varied growth:
– FGN Sukuk increased from N992.56 billion to N1.29 trillion (+N300 billion), lifting its share from 1.41% to 1.66%.
– FGN Savings Bonds grew from N72.87 billion to N97.46 billion (+N24.60 billion), remaining a small 0.13% portion.
– Green Bonds recorded strong relative growth, rising from N15 billion to N62.36 billion (+N47.36 billion).
– Promissory Notes rose from N1.54 trillion to N1.69 trillion (+N142.95 billion), with foreign currency-denominated notes increasing from N1.12 trillion to N1.25 trillion after exchange rate conversions.
The DMO noted that December 2024 figures excluded N680.42 billion in FGN Bonds issued to restructure states’ commercial debts and included N22.719 trillion in restructured Ways and Means Advances converted to bonds under May 2023 approvals. September 2025 values for dollar-linked instruments were converted using the official exchange rate prevailing at the end of the period.
The sharp rise in domestic borrowing aligns with broader fiscal pressures, including the need to fund infrastructure, service existing obligations, and bridge revenue shortfalls amid elevated interest rates and global economic uncertainties.
In parallel, subnational borrowing trends showed concentration among a limited group of entities. Eleven states—Lagos, Enugu, Delta, Cross River, Borno, Rivers, Bauchi, Taraba, Kwara, Niger, and Jigawa—together with the Federal Capital Territory increased their combined domestic debt by N373.06 billion (16.81%) from N2.22 trillion to N2.59 trillion over the same nine months.
Lagos led with the largest absolute increase of N145.62 billion (16.18%), reaching N1.05 trillion. Enugu posted one of the fastest percentage jumps at 63.24% (+N75.43 billion) to N194.72 billion, while Borno recorded the highest relative growth of 69.19% (+N19.31 billion) to N47.23 billion.
Despite improved statutory allocations to states during the period, these entities expanded borrowing rather than deleveraging, highlighting divergent fiscal strategies across subnational governments.
The continued expansion of federal and select subnational debt underscores ongoing challenges in balancing revenue generation, expenditure priorities, and debt sustainability. Market observers will monitor upcoming DMO reports and fiscal policy adjustments for indications of how authorities intend to manage the rising domestic debt burden amid evolving economic conditions.
