DMO data shows federal government accounts for over half of total exposure…
Nigeria’s total public debt rose to $103.94 billion, equivalent to N153.29 trillion, as of September 30, 2025, according to fresh data released by the Debt Management Office (DMO).
The agency said the external component was converted at the official exchange rate of N1,474.85 per dollar, as published by the Central Bank of Nigeria on the same date.
Domestic Debt Now Dominates
A breakdown of the figures shows that domestic borrowing has overtaken external obligations in Nigeria’s overall debt profile.
- Total public debt: $103.94bn (N153.29tn)
- External debt: $48.46bn (N71.48tn) — 46.63% of total
- Domestic debt: $55.47bn (N81.82tn) — 53.37% of total
The heavier domestic share reflects sustained issuance of government securities in the local market, with authorities leaning more on naira-denominated instruments.
Within the domestic portfolio:
- FGN Bonds:9tn (about 80% of domestic debt)
- FGN Naira Bonds:64tn
- US dollar-denominated local bonds:35tn
- Nigerian Treasury Bills:68tn (16.3% of domestic debt)
- Sukuk bonds:29tn
The dominance of FGN Bonds highlights the government’s reliance on long-term instruments to finance budget deficits, largely sourced from local institutional investors such as pension funds and commercial banks.
Federal Government Bears Bulk of Debt
By tier of government, the Federal Government continues to shoulder the largest share of Nigeria’s debt burden.
- Federal Government debt: $52.76bn (N77.81tn) — 50.76% of total
- States and FCT debt: $2.71bn (N4.00tn) — 2.61% of total
The DMO noted that domestic debt figures for 35 states and the Federal Capital Territory were captured as of September 30, 2025, while Rivers State’s domestic debt was recorded as of June 30, 2025.
Rising Trajectory
The latest figures confirm the continued upward movement in Nigeria’s debt stock. Earlier data showed total public debt at N152.40 trillion as of June 30, 2025, up from N149.39 trillion at the end of March.
The Q3 2025 release comes after concerns were raised about delays in publishing updated debt statistics. Prior to the latest disclosure, September figures had not been made public.
What It Means
The shift toward domestic borrowing suggests reduced exposure to foreign exchange volatility, but it also increases pressure on local liquidity and interest costs.
With public debt now above $100 billion, attention is likely to remain on debt sustainability metrics particularly the government’s debt-service-to-revenue ratio as policymakers balance fiscal expansion with the need to maintain macroeconomic stability.
As borrowing continues to fund infrastructure, budget deficits and economic reforms, the structure and cost of Nigeria’s debt will remain central to the country’s fiscal outlook in 2026 and beyond.
