Nigeria’s public debt rose to N153.29tn as of September 2025, driven largely by increased domestic borrowing. DMO data show shifts in debt structure amid government plans to reduce costly external loans.
Nigeria’s Debt Hits N153.29tn as Domestic Borrowing Rises
By Juliet Ezeh
Nigeria’s total public debt climbed to N153.29tn as of September 30, 2025, reflecting a continued rise in government borrowing, with domestic debt accounting for the larger share of the increase.
Data released by the Debt Management Office show that the debt stock rose from N152.40tn recorded at the end of June 2025, representing a quarter-on-quarter increase of N893.87bn.
In dollar terms, the country’s debt moved from $99.66bn in June to $103.94bn in September, a $4.28bn increase within three months.
Domestic Borrowing Drives Growth
A closer look at the figures indicates that domestic debt expanded more sharply during the period. Domestic borrowings rose from $52.67bn in June to $55.47bn in September. In naira terms, domestic debt increased from N80.55tn to N81.82tn.
Domestic obligations accounted for 53.37 per cent of total public debt in September, slightly above the 52.86 per cent recorded in June.
Federal Government instruments dominated the domestic debt profile. FGN Bonds stood at N61.99tn, forming the bulk of local borrowings. Nigerian Treasury Bills were valued at N12.68tn, while Sukuk, Savings Bonds and Green Bonds made up smaller portions of the domestic debt mix.
External Debt Still Significant
External debt also rose within the quarter, increasing from $46.98bn in June to $48.46bn in September. In naira terms, it stood at N71.48tn, representing 46.63 per cent of total public debt.
Multilateral lenders remained Nigeria’s largest external creditors, with institutions such as the World Bank Group and the African Development Bank Group accounting for nearly half of total external debt.
Commercial borrowings, including Eurobonds, also formed a significant share of the external debt stock, while bilateral loans from countries such as China, France and Japan contributed to the balance.
The DMO noted that the September external debt figures were converted at the Central Bank of Nigeria’s official exchange rate of N1,474.85 to the dollar, compared to N1,529.2105 used in June, a factor that slightly moderated the naira value of foreign debt.
Shift in Borrowing Strategy
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently stated that the government is working to reduce reliance on expensive external loans.
Speaking at the G-24 Technical Group Meeting in Abuja, Edun said Nigeria is repositioning its financing strategy toward domestic reforms, private capital mobilisation and diversified funding instruments.
The latest DMO data suggest that while external debt continues to grow, the Federal Government’s borrowing pattern is increasingly tilted toward domestic sources, reshaping the structure of Nigeria’s overall debt portfolio.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.