DMO reports 6.7% annual rise in debt stock despite marginal quarterly increase.
Nigeria’s total public debt climbed to N159.35 trillion at the end of March 2026, with domestic borrowing accounting for more than half of the country’s outstanding obligations, according to the latest figures released by the Debt Management Office (DMO).
The new debt position reflects a N9.96 trillion, or 6.7 per cent, increase from the N149.39 trillion recorded at the end of March 2025.
However, the latest figure represents only a marginal increase compared with the debt stock at the end of December 2025, when Nigeria’s total public debt stood at N159.28 trillion.
On a quarter-on-quarter basis, the debt stock therefore increased by about N75.51 billion, representing a 0.05 per cent rise.
The relatively small quarterly increase masks significant movements within the composition of the country's debt, particularly between domestic and external obligations.
Domestic debt accounts for 54.85% of total obligations
The DMO's report showed that domestic debt stood at N87.4 trillion as of March 31, 2026, representing 54.85 per cent of Nigeria's total public debt.
External debt accounted for the remaining N71.95 trillion, or 45.15 per cent of the total.
Domestic borrowing recorded a stronger year-on-year increase, rising by N8.64 trillion, or 11 per cent, from N78.76 trillion in March 2025.
The DMO said external debt, meanwhile, increased by N1.32 trillion, representing a 1.9 per cent rise from N70.63 trillion recorded in the first quarter of 2025.
The figures highlight the continued dominance of domestic borrowing in Nigeria's overall debt structure as the government finances budgetary requirements and other public expenditure.
External debt declines from December level
Although external debt increased compared with the same period in 2025, it declined on a quarter-on-quarter basis.
The DMO reported that external debt fell by N2.48 trillion, or 3.3 per cent, from N74.43 trillion at the end of December 2025 to N71.95 trillion by March 31, 2026.
Domestic debt moved in the opposite direction, rising by N2.55 trillion, or three per cent, from N84.85 trillion in December 2025.
The movements meant that the overall public debt stock remained virtually unchanged during the first quarter of the year, despite the shift in the composition of the obligations.
The development comes as the Federal Government continues to balance domestic financing with access to international debt markets amid efforts to fund its fiscal programmes and manage the country's financing requirements.
Federal Government holds bulk of domestic debt
The Federal Government accounted for the overwhelming majority of Nigeria's domestic debt, according to the DMO.
The agency put the Federal Government's domestic obligations at N82.88 trillion, while state governments and the Federal Capital Territory accounted for N4.52 trillion.
The figures underline the central role of federal borrowing in Nigeria's domestic debt profile, although subnational governments also contribute to the country's overall public debt stock.
Managing the rising debt burden has remained a major issue for policymakers, particularly as government revenue, expenditure pressures and debt-servicing costs continue to influence fiscal planning.
Debt stock rises to $114.95bn in dollar terms
Measured in US dollars, Nigeria's total public debt stood at $114.95 billion as of March 31, 2026.
This compares with $97.24 billion recorded in March 2025, representing a substantial increase over the 12-month period.
The DMO said the external debt component was converted into naira using the Central Bank of Nigeria's official exchange rate of N1,386.2156 to the dollar as of March 31, 2026.
The use of the prevailing exchange rate is significant because movements in the naira-dollar exchange rate can substantially affect the naira value of Nigeria's external debt, even where the underlying dollar-denominated obligations have not changed by the same magnitude.
National Assembly approves $6bn external borrowing request
The latest debt figures also come against the backdrop of Nigeria's efforts to secure additional external financing.
On March 31, the National Assembly approved President Bola Ahmed Tinubu's request to borrow $6 billion externally.
The approval provides the Federal Government with additional borrowing capacity as it seeks to finance its programmes and meet funding requirements.
The new borrowing request, however, also places renewed attention on Nigeria's debt-management strategy and the government's ability to ensure that additional borrowing contributes to economic growth and revenue generation.
With total public debt now above N159 trillion, fiscal authorities face the challenge of balancing the need for financing with the imperative of keeping debt sustainable.
The DMO's latest report shows that while Nigeria's overall debt stock was largely stable during the first quarter of 2026, the longer-term trend remains one of rising obligations, particularly on the domestic side.
The direction of borrowing, the cost of servicing the debt and the returns generated from borrowed funds are therefore likely to remain key issues in assessing the sustainability of Nigeria's fiscal position.