Nigeria’s overall public debt has reached a new high of N152.4 trillion as of the end of June 2025, marking a notable rise from the previous quarter’s figure of N149.4 trillion.
The Debt Management Office (DMO), the nation’s debt oversight body, released these updated statistics, revealing a N3.0 trillion jump—or about 2.0% growth—in the naira-denominated total. When measured in U.S. dollars, the debt climbed from $97.2 billion to $99.7 billion, a sharper 2.5% uptick, amid ongoing economic pressures.
External Obligations Show Steady Growth
The country’s foreign debt component edged up to $47.0 billion, equivalent to N71.9 trillion, compared to $46.0 billion (N70.6 trillion) three months earlier. International institutions continue to hold the biggest slice, totaling $23.2 billion and comprising nearly half (49.4%) of all external liabilities. Leading the pack is the World Bank’s International Development Association with $18.0 billion in outstanding loans.
Loans from other countries added $6.2 billion to the tally, with China’s Export-Import Bank topping the list at $4.9 billion. Contributions from nations like France, Japan, India, and Germany followed at lower levels. Meanwhile, market-based debt, primarily Eurobonds, stood at $17.3 billion—making up 36.9% of external commitments—alongside $269 million from joint loans and bank facilities.
This mix of funding sources leaves Nigeria exposed to fluctuations in international financial markets, while the emphasis on favorable-rate loans from global bodies signals a persistent need for affordable capital.
Domestic Borrowing Takes Center Stage
At home, domestic liabilities swelled to N80.6 trillion from N78.8 trillion, a N1.8 trillion expansion. Government-issued bonds formed the bulk, at N60.7 trillion or 79.2% of the domestic total. This included N36.5 trillion in local-currency bonds, N22.7 trillion from converted short-term fiscal advances, and N1.4 trillion in dollar-denominated versions.
Short-term Treasury bills contributed N12.8 trillion (16.7%), with Islamic-compliant Sukuk bonds at N1.3 trillion. Additional instruments encompassed N92 billion in retail savings bonds, N62 billion in eco-friendly bonds, and N1.7 trillion in promissory notes across currencies, valued using the Central Bank’s June rates.
The expansion in converted fiscal advances points to mounting budgetary challenges, as the administration turns increasingly to bond sales to cover spending shortfalls.
Federal Share Dominates, States Add Modest Burden
The central government shoulders the lion’s share of the debt, totaling N141.1 trillion or 92.6% of the aggregate. This breaks down to N64.5 trillion abroad and N76.6 trillion domestically.
In a fresh disclosure for 2025, the DMO detailed subnational debts separately: states and the Federal Capital Territory together owe $4.8 billion (N7.4 trillion) externally and N4.0 trillion locally, for a combined N11.3 trillion—7.4% of the national figure.
Key Factors and Broader Concerns
The DMO noted that foreign debts were translated to naira at the official rate of N1,529.21 per dollar on June 30, a depreciation from prior periods that amplified the local-currency impact of overseas loans. Such currency shifts can boost reported totals even without new borrowing, underscoring the risks tied to a dollar-heavy portfolio.
While Nigeria’s debt as a percentage of gross domestic product stays below global red lines, the rapid accumulation and rising repayment costs are sparking debates on long-term viability. Experts stress the urgency of boosting tax revenues and streamlining public spending to ease the strain. Without these steps, debt obligations risk overshadowing critical outlays for roads, schools, and healthcare, potentially hampering economic recovery.
