National Debt Hits N153.29 Trillion
ABUJA — The Debt Management Office (DMO) has revealed that Nigeria’s total public debt stock climbed to ₦153.29 trillion as of September 30, 2025. This figure represents a ₦900 billion increase from the ₦152.39 trillion recorded in June, marking a marginal 0.59 percent growth over three months. The portfolio encompasses the combined domestic and external liabilities of the Federal Government, the 36 states, and the Federal Capital Territory (FCT). Consequently, the nation’s debt architecture remains heavily weighted toward internal obligations, with domestic debt now standing at ₦81.81 trillion. External debt follows closely at ₦71.47 trillion, reflecting the persistent impact of currency volatility and renewed international borrowing to bridge the widening fiscal gap.
The Federal Government remains the primary driver of this accumulation, accounting for approximately 92.6 percent of the total domestic debt stock. Domestic liabilities for the center rose to ₦77.81 trillion in the third quarter, up from ₦76.58 trillion in June. Furthermore, state governments and the FCT saw their internal obligations marginally increase to ₦4 trillion during the same period. While it is true that the growth rate has slowed compared to the previous quarter, the sheer volume of the debt stock continues to exert pressure on the national treasury. Indeed, the DMO has previously emphasized that budget shortfalls and the funding of critical infrastructure projects remain the core reasons for this upward trajectory.
The Finance Minister, Mr. Wale Edun, recently defended the administration’s fiscal strategy before the Senate, arguing that debt sustainability remains within “safe limits.” In a related development, the 2026 budget deficit is projected at a staggering ₦23.85 trillion, representing 4.28 percent of the Gross Domestic Product (GDP). Granted, the government is exploring asset disposals and enhanced revenue collection through the Nigeria Revenue Service (NRS) to mitigate future borrowing. Significantly, however, the DMO had to refute claims earlier this year that debt had surged to ₦142 trillion under the current presidency, clarifying that the starting point was ₦87 trillion in 2023.
Notably, the securitization of the Central Bank’s “Ways and Means” advances has significantly reshaped the domestic debt landscape over the last year. Above all, the high cost of servicing these loans remains a primary concern for international observers and local economic analysts alike. Subsequently, the government must balance its 1.84 million barrels per day “stretch target” for oil production with the reality of fluctuating global prices. Although revenue from the Federation Account (FAAC) has seen a 55% jump recently, the appetite for new loans for rail and power projects shows no signs of waning.
Finally, the DMO maintains that all borrowing remains anchored on the legal frameworks provided by the Fiscal Responsibility Act. Therefore, the focus now shifts to the 2026 Appropriation Bill and whether the government can effectively narrow the “wide gap” between projected and actual revenues. As a result of this latest report, the discourse on national borrowing is expected to intensify within the National Assembly in the coming weeks. The quest for a sustainable economic future depends on the administration’s ability to convert these massive loans into productive, revenue-generating assets.