Nigeria’s public debt has ballooned to N152.4 trillion as of June 30, 2025, according to the latest data released by the Debt Management Office (DMO) — marking a new milestone in the country’s fiscal challenges under President Bola Tinubu’s administration.
The figure reflects an increase of N3.01 trillion from N149.39 trillion recorded at the end of March 2025 — a 2.01% rise in just three months. In dollar terms, the total debt stock climbed from $97.24 billion to $99.66 billion, indicating a 2.49% increase.
The DMO report highlights the federal government’s growing reliance on both domestic and external borrowing to bridge budget shortfalls, despite promises to boost revenue generation and reform foreign exchange policies.
Breakdown of the Debt Composition
External Debt:
Nigeria’s external obligations rose to $46.98 billion (N71.85 trillion) by June, up from $45.98 billion (N70.63 trillion) in March. Much of the increase was attributed to continued borrowing from multilateral lenders, particularly the World Bank, which remains Nigeria’s largest external creditor with $18.04 billion — about 38% of total external debt.
Multilateral lenders collectively accounted for $23.19 billion (49.4%), with key institutions including the African Development Bank (AfDB), International Monetary Fund (IMF), and Islamic Development Bank.
Bilateral loans stood at $6.20 billion, led by the China Exim Bank with $4.91 billion, while smaller exposures came from France, Japan, India, and Germany.
Commercial borrowings, mainly Eurobonds, totalled $17.32 billion (36.9%), alongside $268.9 million in syndicated and commercial bank loans.
Analysts warn that Nigeria’s heavy exposure to Eurobonds could leave it vulnerable to global interest rate shocks, while dependence on concessional multilateral financing underscores the fragility of its fiscal position.
Domestic Debt:
Domestically, Nigeria’s debt climbed from N78.76 trillion in March to N80.55 trillion in June — an increase of N1.79 trillion (2.27%).
The portfolio was dominated by Federal Government bonds worth N60.65 trillion (79.2% of domestic debt), comprising:
N36.52 trillion in naira-denominated bonds,
N22.72 trillion in securitised Ways and Means advances from the Central Bank of Nigeria (CBN), and
N1.40 trillion in dollar bonds.
Other instruments included Treasury bills (N12.76 trillion), Sukuk bonds (N1.29 trillion), savings bonds (N91.53 billion), green bonds (N62.36 billion), and promissory notes (N1.73 trillion).
The securitisation of the CBN’s overdrafts into long-term instruments underscores the fiscal pressures confronting the Tinubu administration amid efforts to restore monetary discipline and investor confidence.
Federal vs State Debt
The Federal Government accounted for N141.08 trillion (92.6%) of the total debt, split between N64.49 trillion in external liabilities and N76.59 trillion in domestic obligations.
In contrast, state governments and the Federal Capital Territory (FCT) owed a combined N11.32 trillion (7.4%), consisting of $4.81 billion (N7.36 trillion) in external debt and N3.96 trillion in domestic borrowings.
Growing Fiscal Strain
The new debt figures come at a time when the government is intensifying efforts to boost non-oil revenue, tame inflation, and stabilise the naira as part of its economic reform drive.
While the DMO maintains that Nigeria’s debt remains within “sustainable levels,” economists continue to raise concerns about the rising cost of debt servicing, exchange rate volatility, and limited fiscal space to support development priorities.
