Nigeria’s public debt grows to N153.29trn amid increased reliance on local market

Nigeria’s total public debt stock rose to $103.94 billion, equivalent to about N153.29 trillion, as of September 30, 2025, according to the latest figures released by the Debt Management Office (DMO).

The DMO disclosed that the conversion of external debt into naira was based on the Central Bank of Nigeria (CBN) official exchange rate of $1 to N1,474.85 as of the reference date.

The data shows that Nigeria’s external debt stock stood at $48.46 billion, equivalent to N71.48 trillion, accounting for 46.63 percent of the total public debt.

In contrast, domestic debt rose to $55.47 billion, or N81.82 trillion, representing 53.37 percent of the country’s total debt exposure.

This marks a continuation of the trend where domestic borrowing constitutes a larger share of Nigeria’s debt portfolio, reflecting sustained issuance of government securities in the local market.

The structure indicates strong reliance on long-term bonds as the primary funding instrument, with significant participation from local investors such as pension funds, banks, and other financial institutions.

A tier-by-tier breakdown shows that the Federal Government continues to account for the bulk of Nigeria’s debt burden.

Federal Government debt stands at $52.76 billion, equivalent to about N77.81 trillion, representing 50.76 percent of total public debt.

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Debt owed by the 35 states and the Federal Capital Territory (FCT) amounts to $2.71 billion, or about N4.00 trillion, contributing 2.61 percent of the total.

The DMO clarified that domestic debt stock for the 35 states and the FCT was recorded as of September 30, 2025, while that of Rivers State was as of June 30, 2025.

The latest figures show a steady increase in Nigeria’s debt profile. Previously, total public debt stood at N152.40 trillion as of June 30, 2025, up from N149.39 trillion at the end of March 2025.

The heavier domestic share suggests a stronger dependence on local borrowing through bonds, treasury bills, and other instruments issued in the domestic market, potentially reducing foreign exchange exposure but increasing pressure on domestic liquidity and interest rates.

The release of the Q3 2025 data comes shortly after media scrutiny over delays in publication of the figures, marking the first official disclosure of Nigeria’s debt position as of September 2025.

Analysts say the evolving debt structure underscores the need for prudent fiscal management, improved revenue mobilisation, and sustained economic reforms to ensure long-term debt sustainability.