Nigeria’s Debt Hits N159 Trillion in 2025
The nation’s consolidated debt position has expanded to N159.27 trillion by the close of 2025, marking a substantial acceleration in public sector borrowing that has seen liabilities increase by over N14.6 trillion within a single fiscal year. The Debt Management Office’s fourth quarter disclosure reveals borrowing momentum that outpaced prior periods, with the final three months of 2025 alone contributing N5.98 trillion to the aggregate stock.
The year-on-year trajectory shows a 10 percent expansion from the N144.67 trillion baseline recorded at the equivalent period in 2024, reflecting sustained deficit financing across both federal and subnational administrative levels. The composition remains bifurcated between domestic obligations, which constitute the larger segment at N84.84 trillion (59.11 billion), and external commitments totaling N74.42 trillion (51.85 billion).
Domestic debt accumulation has proceeded at a faster clip than foreign obligations, with the internal component swelling by N10.47 trillion or 14.1 percent from the N74.38 trillion position held in December 2024. External liabilities grew by N4.14 trillion over the equivalent timeframe, building upon the N70.29 trillion recorded when 2024 concluded.
The federal government maintains predominant exposure within both categories, holding N80.48 trillion of the domestic stock—representing a N2.67 trillion quarterly increment—and N66.26 trillion of foreign obligations. State administrations and the Federal Capital Territory collectively account for N4.36 trillion in domestic borrowing, a modest rise from the N3.96 trillion position three months prior, alongside N8.15 trillion (5.68 billion) in external commitments.
Currency conversion methodology employed by the debt office applied the Central Bank of Nigeria’s official rate of N1,435.25 per dollar as of December 31, 2025, a valuation approach that captures naira depreciation effects on the external debt book. The exchange rate assumption carries significant implications for debt servicing costs and principal valuation in local currency terms.
The quarterly addition of nearly N6 trillion suggests borrowing operations intensified as 2025 progressed, with fiscal pressures potentially accelerating toward the fiscal year conclusion. The trajectory positions Nigeria’s debt-to-revenue dynamics and servicing obligations as critical variables for macroeconomic stability assessments entering the 2026 fiscal period.