Nigeria’s total public debt rose to N153.29 trillion by the end of September 2025, marking a quarter-on-quarter increase of N893.87 billion from the N152.40 trillion recorded in June, according to data released by the Debt Management Office (DMO).
The latest figures show a mixed picture across currency denominations. In naira terms, the debt stock grew modestly. However, in dollar terms, the total debt climbed from $99.66 billion to $103.94 billion over the three-month period, a 4.29 percent increase. This dollar-denominated growth reflects both new borrowings and exchange rate fluctuations, as the DMO used a stronger official exchange rate of N1,474.85 to the dollar for September conversions, compared to N1,529.21 in June.
External debt stood at $48.46 billion (N71.48 trillion), representing 46.63 percent of the total public debt. This marks an increase of $1.48 billion from June, when external borrowings were $46.98 billion. Meanwhile, domestic debt rose more sharply in dollar terms, increasing by $2.80 billion to $55.47 billion. In naira, domestic debt was valued at N81.82 trillion, accounting for 53.37 percent of the total debt portfolio.
A breakdown of the external debt stock reveals a continued reliance on multilateral creditors. Loans from the World Bank Group and African Development Bank Group, among other multilateral institutions, totaled $23.41 billion, or 48.31 percent of external debt. Bilateral debt amounted to $6.29 billion (12.97 percent), with China’s Exim Bank being the largest single bilateral creditor at $4.82 billion. Commercial borrowings, dominated by Eurobonds, totaled $17.32 billion, representing 35.74 percent of the external debt profile.
On the domestic side, Federal Government instruments remain the primary component. Federal Government Bonds totaled N61.99 trillion, comprising 79.67 percent of federal domestic debt. Nigerian Treasury Bills followed at N12.68 trillion (16.30 percent), with FGN Sukuk, Savings Bonds, and Green Bonds making up the balance.
The DMO noted that domestic debt data for 35 states and the Federal Capital Territory were reported as of September 30, 2025, while Rivers State’s figures were as of June 30.
The release of this data coincides with remarks from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who stated that Nigeria is intentionally moving away from costly external borrowing. Speaking at a G-24 meeting in Abuja, Edun emphasized a strategic shift toward a growth model powered by domestic reforms, private capital, and diversified financing instruments, aligning with global trends favoring innovative and blended finance.
The September debt report underscores a persistent dominance of domestic borrowing, while external obligations also saw a rise. This composition reflects the ongoing challenge of financing fiscal needs within a framework aimed at long-term debt sustainability and reduced external vulnerability.
