Nigeria’s Public Debt Hits N159 Trillion
Total public debt stock for Africa’s largest economy climbed to N159.28 trillion as of December 2025, with domestic borrowing now constituting the larger share of the nation’s liabilities, according to official figures released by the Debt Management Office.
The data, which aggregates the obligations of the Federal Government, the 36 state governments, and the Federal Capital Territory, places the total debt burden at approximately $110.97 billion based on current exchange valuations. A closer examination of the DMO breakdown reveals a pronounced tilt towards the local financial market. Domestic debt accounted for N84.85 trillion, representing 53.27 percent of the total portfolio, while external debt stood at N74.43 trillion, making up the remaining 46.73 percent.
The Federal Government remains the dominant obligor within the structure. According to the DMO figures, the central government is responsible for N80.49 trillion of the domestic component and N66.27 trillion of the external debt stock. In contrast, the collective indebtedness of the sub-national entities—the 36 states and the FCT—is considerably smaller, standing at N4.36 trillion in domestic debt and N8.16 trillion in external obligations.
A granular view of the external debt portfolio shows that multilateral lenders hold the largest exposure. Loans from institutions such as the World Bank and the African Development Bank total $23.19 billion, constituting 45 percent of external debt. The DMO data confirms that Nigeria is currently the third-largest debtor to the World Bank’s International Development Association, with outstanding credit facilities to the World Bank Group alone reaching $18.3 billion. The African Development Bank holds approximately $3.5 billion in Nigerian debt.
Bilateral loans, which are direct arrangements with foreign governments, account for $6.20 billion, or 12 percent of external debt. The Export-Import Bank of China is the principal creditor in this category, holding $4.91 billion, which represents over 80 percent of all bilateral obligations.
On the domestic front, Federal Government bonds dominate the landscape, representing roughly 80 percent of local debt instruments. This category has expanded to include the securitisation of Ways and Means advances previously obtained from the Central Bank of Nigeria. The local debt mix is further diversified by Nigerian Treasury Bills, FGN Sukuk offerings, and Promissory Notes held primarily by domestic pension funds and institutional investors.
While the absolute figure of N159.28 trillion is substantial, the DMO and international financial bodies continue to gauge sustainability through the debt-to-GDP ratio. According to projections published in April by the International Monetary Fund, Nigeria’s debt-to-GDP ratio is expected to trend downward, moving from an estimated 35.5 percent in 2025 to 32.3 percent in 2026. Although this remains well below the 60 percent threshold commonly cited as a benchmark for developing economies, fiscal policy observers note that the ratio does not fully capture liquidity pressures. High debt-servicing costs, which consume a significant portion of federally retained revenue, remain a persistent structural challenge for the economy.