By Zainab Adinoyi
Nigeria’s total public debt has climbed to ₦152.40 trillion as of June 30, 2025, marking a ₦3.01 trillion increase from the ₦149.39 trillion recorded at the end of March, according to the latest figures released by the Debt Management Office (DMO).
The DMO report revealed that the nation’s debt stock, which includes obligations of the Federal Government, the 36 states, and the Federal Capital Territory, grew by 2.01 percent in three months. In dollar terms, the debt rose from $97.24 billion in March to $99.66 billion in June, representing a 2.49 percent increase.
The DMO attributed the rise to fresh borrowings to finance budget deficits, the issuance of domestic securities, and the continuous depreciation of the Naira, which now trades officially at ₦1,529.21 to the dollar. This exchange rate shift significantly inflated the Naira value of foreign-denominated debts.
A breakdown of the debt shows that Nigeria’s external debt stood at $46.98 billion (₦71.85 trillion) as of June, up from $45.98 billion (₦70.63 trillion) in March. Of this, multilateral lenders accounted for $23.19 billion—led by the World Bank’s International Development Association (IDA) with $18.04 billion—while bilateral loans amounted to $6.20 billion, dominated by China’s Exim Bank with $4.91 billion. The remaining $17.32 billion represents commercial borrowings, mainly Eurobonds, and syndicated loans.
Domestically, Nigeria’s debt rose from ₦78.76 trillion to ₦80.55 trillion during the same period. Federal Government bonds make up the largest share, totaling ₦60.65 trillion (about 79.2 percent of domestic debt). This includes ₦36.52 trillion in Naira bonds, ₦22.72 trillion in securitized Ways and Means advances, and ₦1.40 trillion in dollar bonds. Treasury bills account for ₦12.76 trillion, while Sukuk bonds and savings bonds stand at ₦1.29 trillion and ₦91.53 billion respectively.
The Federal Government alone is responsible for about ₦141.08 trillion, representing over 92 percent of the nation’s total debt. This includes ₦64.49 trillion in external debt and ₦76.59 trillion in domestic obligations.
Analysts warn that Nigeria’s debt trajectory raises fresh concerns about sustainability, especially as debt servicing costs continue to consume a significant portion of government revenues. The floating exchange rate regime, while aligning with global market standards, has magnified the local currency value of external debt, putting additional pressure on fiscal stability.
President Bola Ahmed Tinubu’s administration has defended its borrowing strategy as a necessary measure to stimulate growth and infrastructure development. However, economists caution that borrowing to finance recurrent spending and rising debt-servicing obligations could push the nation toward a debt trap if revenue generation does not improve.
The DMO emphasized that Nigeria remains within acceptable debt limits when measured against GDP but noted that rising interest rates and exchange rate volatility could worsen the debt burden in the coming months.
As the government prepares to refinance a $1.118 billion Eurobond due in November 2025 and seeks additional $2.3 billion in external borrowing for the 2025 fiscal year, stakeholders are urging more transparency, efficient spending, and diversification of revenue sources to avoid further escalation of the public debt.