The Federal Government of Nigeria’s domestic debt rose to ₦77.81 trillion as of September 30, 2025, reflecting continued reliance on local borrowing to meet funding and liquidity needs. The data was published by the Debt Management Office on its official website.
Debt Composition Highlights
The breakdown of the domestic debt portfolio shows a strong dominance of conventional bonds and treasury bills, with specialised instruments playing a smaller role:
- FGN Bonds: ₦61.9 trillion (≈80% of domestic debt)
- Naira-denominated: ₦60.64 trillion
- US dollar-denominated: ₦1.35 trillion
- Nigerian Treasury Bills: ₦12.68 trillion (16.3%)
- Sukuk Bonds: ₦1.29 trillion
- FGN Savings Bonds: ₦97.46 billion (0.13%)
- FGN Green Bonds: ₦62.36 billion (0.08%)
- Promissory Notes: ₦1.69 trillion (2.17%), comprising ₦431.22 billion in naira and ₦1.25 trillion in foreign currency
The data reflects a borrowing strategy that blends long-term instruments like FGN Bonds to provide stable funding over extended maturities, with short-term instruments like Treasury Bills to manage liquidity.
Strategic Significance of Specialised Instruments
While green bonds, savings bonds, Sukuk, and promissory notes constitute a small portion of the portfolio, they serve strategic purposes:
- Green Bonds: Fund environmentally sustainable projects, including renewable energy and climate adaptation.
- Savings Bonds: Target retail investors and small savers, broadening participation in government securities.
- Sukuk Bonds: Compliant with non-interest financing principles, often used for infrastructure projects.
- Promissory Notes: Settle verified legacy obligations, such as contractor arrears, converting liabilities into structured debt.
Context and Implications
The domestic debt figure marks a significant jump from ₦1.707 trillion in Q2 2025, highlighting the government’s ongoing strategy of leveraging the local debt market to finance its operations. Conventional bonds and treasury bills remain the backbone of Nigeria’s domestic debt, while specialised instruments signal efforts to diversify funding sources and deepen investor participation.
The Q3 2025 domestic debt release followed scrutiny over delays in public disclosure by the DMO, providing analysts, investors, and policymakers with updated insight into the scale and composition of federal borrowing in the local market.
The data underscores the government’s reliance on local capital markets while continuing to explore innovative instruments to attract a broader spectrum of investors.
