Nigeria’s total public debt has increased to N159.28tn as of 31 December 2025, driven by fresh domestic and external borrowings, data released on Tuesday by the Debt Management Office has shown.
The latest figure represents a quarter-on-quarter increase of N5.98tn, or 3.9 per cent, from N153.29tn recorded at the end of September 2025, and a year-on-year rise of N14.61tn, or 10.1 per cent, from N144.67tn as of 31 December 2024.
An analysis of the data showed that both domestic and external borrowings contributed to the increase recorded in the final quarter of 2025.
External debt rose from N71.48tn in September 2025 to N74.43tn in December 2025, indicating an increase of N2.95tn or 4.1 per cent.
Similarly, domestic debt climbed from N81.82tn to N84.85tn over the same period, reflecting a rise of N3.03tn or 3.7 per cent.
Despite the increases, domestic debt remained the larger component of the country’s debt stock, accounting for 53.27 per cent of total public debt as of December 2025, compared to external debt, which stood at 46.73 per cent.
This structure was broadly unchanged from September 2025, when domestic debt accounted for 53.37 per cent and external debt made up 46.63 per cent of the total, indicating a stable debt composition over the quarter.
Further breakdown showed that the Federal Government remained the dominant borrower, particularly in the domestic market.
Federal Government domestic debt rose from N77.81tn in September 2025 to N80.49tn in December 2025, while domestic debt owed by states and the Federal Capital Territory increased from N4.00tn to N4.36tn within the same period.
In dollar terms, Nigeria’s total public debt rose from $103.94bn in September 2025 to $110.97bn in December 2025, reflecting an increase of $7.04bn within the quarter.
External debt increased from $48.46bn to $51.86bn, while domestic debt rose from $55.47bn to $59.12bn over the same period.
However, the naira value of external debt was partly moderated by exchange rate movements, as the DMO applied an official rate of N1,474.85 to a dollar for September 2025 and N1,435.26 to a dollar for December 2025.
On a year-on-year basis, the data showed that domestic borrowing was the primary driver of the increase in Nigeria’s debt stock.
Total domestic debt rose from N74.38tn in December 2024 to N84.85tn in December 2025, indicating an increase of N10.47tn or 14.1 per cent.
In contrast, external debt increased from N70.29tn to N74.43tn over the same period, reflecting a rise of N4.14tn or 5.9 per cent.
The Federal Government accounted for the bulk of the debt stock, with N66.27tn in external debt and N80.49tn in domestic debt as of December 2025, while states and the FCT recorded N8.16tn and N4.36tn, respectively.
Compared with the previous year, Federal Government domestic debt rose significantly, reinforcing its position as the main source of debt accumulation during the period.
The composition of the debt also shifted slightly within the year. External debt, which accounted for 48.59 per cent of total debt in December 2024, declined to 46.73 per cent by December 2025, while domestic debt rose from 51.41 per cent to 53.27 per cent over the same period.
Speaking at a panel session on Monday at the ongoing IMF Spring Meetings in Washington, DC, the Director-General of the Debt Management Office, Patience Oniha, said Nigeria’s borrowing process is subject to strict legislative approval and oversight, which helps strengthen transparency and investor confidence.
She noted that under the Fiscal Responsibility Act and the DMO Act, all borrowings, whether domestic or external, must receive approval from the National Assembly before they are contracted.
Oniha said this process ensures that lawmakers scrutinise the terms, lenders and implications of each loan, including its impact on debt sustainability and fiscal space.
“Those requests are presented to them for a detailed analysis… and they invite us to come and defend it… If they are not satisfied, they tell you to go back and provide more information. That is only when the loan can be approved and contracted,” she said.
She added that the approval process, which is often conducted in public and sometimes televised, ensures that borrowing plans are widely known, thereby reinforcing accountability.
According to her, the requirement for legislative approval before borrowing helps reduce risks for investors by signalling compliance with legal frameworks and improving transparency.
“When they see that the process goes through parliamentary approval, it tells them that we are complying with the law… it builds confidence that the process is transparent and legitimate,” she said.
The DMO boss also said the agency regularly publishes debt data and presents performance reports to relevant committees of the National Assembly, covering debt stock, servicing obligations and projections.
However, she noted that the system could be strengthened further through improved capacity within the legislature, particularly given the increasing complexity of debt instruments and market conditions.
“We need regular capacity building for parliament… markets are now more complex, and you sometimes have new members in these committees who may not have the technical background,” she said.
Oniha added that frequent turnover of lawmakers and time constraints in the legislative calendar could affect the depth of scrutiny applied to borrowing requests, especially when approvals are rushed toward the end of the fiscal cycle.
She also called for stronger collaboration with development partners such as the World Bank and the IMF to support more intensive training for lawmakers, including exposure to global best practices in debt management.
According to her, beyond improving technical understanding of debt instruments, stakeholders must also focus on how borrowing affects fiscal space and long-term development, stressing the need to balance debt with revenue mobilisation.
“We should be looking at how debt can affect fiscal space, how it can support development, and at what point we should begin to focus more on revenues instead of continuous borrowing,” she said.
