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Nigeria’s total public debt increased by N14.61 trillion in 2025, rising to N159.28 trillion as of December 31, according to the latest provisional data released by the Debt Management Office (DMO) on Wednesday.
The figure represents a 10.1 percent year-on-year growth compared to the N144.67 trillion recorded at the end of 2024, underscoring sustained borrowing to finance fiscal operations. In dollar terms, the country’s debt stock rose from $94.23 billion in December 2024 to $110.97 billion in December 2025, reflecting an increase of $16.75 billion over the one-year period.
On a quarterly basis, public debt also trended upward, increasing by N5.98 trillion from N153.29 trillion in September 2025 to N159.28 trillion in December 2025, representing a 3.9 percent rise within three months. An analysis of the debt composition shows that domestic borrowing remained the dominant component of Nigeria’s debt profile, accounting for 53.27 percent of the total.
Domestic debt rose significantly from N74.38 trillion in December 2024 to N84.85 trillion in December 2025, marking an increase of N10.47 trillion or 14.1 percent year-on-year. Within the final quarter of the year, domestic debt expanded by N3.03 trillion from N81.82 trillion recorded in September 2025. In dollar terms, domestic obligations increased from $48.44 billion to $59.12 billion, reflecting continued reliance on the local debt market to bridge funding gaps.
The Federal Government accounted for the bulk of domestic debt at N80.49 trillion, representing 50.53 percent of the total public debt stock, while states and the Federal Capital Territory accounted for N4.36 trillion. External debt recorded a more moderate increase during the period, standing at N74.43 trillion as of December 2025, or 46.73 percent of total public debt.
This represents a year-on-year rise of N4.14 trillion from N70.29 trillion recorded in December 2024. On a quarterly basis, external debt grew by N2.95 trillion from N71.48 trillion in September 2025. In dollar terms, external debt rose from $45.78 billion to $51.86 billion within the review period.
A breakdown shows that the Federal Government accounted for N66.27 trillion of the external debt, while states and the Federal Capital Territory held N8.16 trillion. Despite the overall increase in borrowing, the structure of Nigeria’s debt portfolio remained relatively stable, with a slight shift toward domestic financing.
Domestic debt’s share rose from 51.41 percent in December 2024 to 53.27 percent in December 2025, while the proportion of external debt declined marginally from 48.59 percent to 46.73 percent. The DMO noted that the December 2025 figures are provisional and were computed using the Central Bank of Nigeria’s official exchange rate of N1,435.2571 to the dollar.
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