Nigeria’s total public debt climbed to N153.29 trillion as of September 30, 2025, underscoring a steady build-up in both domestic and external obligations within a single quarter. Fresh data released by the Debt Management Office (DMO) show that the country’s debt stock rose from N152.40 trillion recorded at the end of June to N153.29 trillion in September, reflecting a quarter-on-quarter increase of N893.87 billion.
Dollar-Denominated Debt Crosses $103bn
In dollar terms, the upward trend was also evident. Nigeria’s total public debt increased from $99.66 billion in June to $103.94 billion in September — a rise of $4.28 billion, representing a 4.29 per cent expansion over the three-month period.
External debt accounted for $48.46 billion of the September total, equivalent to N71.48 trillion and 46.63 per cent of overall public debt. This compares with $46.98 billion as of June 30, when external obligations made up 47.14 per cent of the total. Within the quarter, external debt increased by $1.48 billion.
Domestic debt, however, rose more sharply in dollar terms. It moved from $52.67 billion in June to $55.47 billion in September, marking a $2.80 billion increase. In naira terms, domestic borrowings grew from N80.55 trillion to N81.82 trillion over the same period. Consequently, domestic debt accounted for 53.37 per cent of total public debt in September, slightly above the 52.86 per cent recorded three months earlier.
The DMO noted that the September external debt figures were converted at the official exchange rate of N1,474.85 to the dollar, as provided by the Central Bank of Nigeria. In contrast, the June figures were calculated using an exchange rate of N1,529.2105 per dollar. The relative strengthening of the naira in September helped moderate the naira value of external obligations.
Multilateral Lenders Remain Dominant
A breakdown of the external debt stock reveals that multilateral institutions continue to be Nigeria’s largest creditors. Loans from the World Bank Group, the African Development Bank Group and other multilateral bodies amounted to $23.41 billion, representing 48.31 per cent of total external debt.
Within this category, the International Development Association accounted for $18.18 billion, while the International Bank for Reconstruction and Development was owed $1.36 billion. The African Development Bank was owed $2.15 billion and the African Development Fund $1.02 billion. Other multilateral creditors included the Islamic Development Bank and the International Fund for Agricultural Development.
Bilateral debt stood at $6.29 billion, accounting for 12.97 per cent of external debt. The Export-Import Bank of China remained the largest bilateral lender with $4.82 billion, while loans from France, Japan, India and Germany also featured. The China Development Bank was owed $423.51 million.
Commercial borrowings continued to form a significant portion of the external debt profile. Eurobonds accounted for $17.32 billion, representing 35.74 per cent of the total external debt stock. Additional commercial liabilities included $1.45 billion in syndicated project loans and a facility from Deutsche Bank.
Federal Government Instruments Dominate Domestic Debt
On the domestic front, Federal Government instruments remained the backbone of the debt structure. As of September 30, 2025, Federal Government of Nigeria (FGN) Bonds stood at N61.99 trillion, accounting for 79.67 per cent of the Federal Government’s domestic debt. Of this amount, N60.64 trillion were naira-denominated bonds, while N1.35 trillion represented dollar bonds converted to naira.
Nigerian Treasury Bills totalled N12.68 trillion, making up 16.30 per cent of domestic debt. FGN Sukuk amounted to N1.29 trillion, while FGN Savings Bonds and Green Bonds stood at N97.46 billion and N62.36 billion respectively. Promissory notes — both naira and foreign currency-denominated — totalled N1.69 trillion.
The DMO added that domestic debt data for 35 states and the Federal Capital Territory were updated to September 30, 2025, while figures for Rivers State were as of June 30, 2025.
Policy Shift Away from Expensive External Borrowing
Despite the continued rise in debt levels, the Federal Government has signalled a recalibration of its borrowing strategy. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently indicated that Nigeria is pivoting away from heavy reliance on costly external loans.
Speaking at the G-24 Technical Group Meeting in Abuja, Edun said the government was deliberately transitioning toward a more resilient growth framework anchored on domestic reforms, private capital mobilisation and diversified financing instruments.
According to him, the new approach aligns with evolving global development finance priorities that emphasise innovative financing models, blended instruments and expanded concessional funding windows, particularly among developing economies.
The latest figures, however, highlight the delicate balancing act facing policymakers: sustaining fiscal operations and development financing needs while managing rising debt levels and shifting financing strategies in a volatile global economic environment.