Nigeria’s total public debt climbed to N153.29 trillion as of September 30, 2025, reflecting continued growth in both domestic and external obligations, according to fresh data released by the Debt Management Office (DMO).
The new figure represents a quarter-on-quarter increase of N893.87 billion from the N152.40 trillion recorded at the end of June 2025.
In dollar terms, the country’s debt stock rose from $99.66 billion in June to $103.94 billion in September — a $4.28 billion increase, equivalent to a 4.29 percent rise over the three-month period.
As of September, total external debt stood at $48.46 billion (N71.48 trillion), accounting for 46.63 percent of the total public debt. This marks an increase of $1.48 billion compared to the $46.98 billion recorded in June, when external debt made up 47.14 percent of the total.
The DMO noted that September’s external debt was converted using the Central Bank of Nigeria (CBN) official exchange rate of N1,474.85/$, compared to N1,529.2105/$ used in June. The relatively stronger exchange rate in September helped moderate the naira value of foreign borrowings.
Multilateral lenders remained Nigeria’s largest external creditors. Loans from institutions such as the World Bank Group and the African Development Bank Group totalled $23.41 billion, representing 48.31 percent of external debt.
Within this category, the International Development Association accounted for $18.18 billion, while the International Bank for Reconstruction and Development was owed $1.36 billion. The African Development Bank and the African Development Fund were owed $2.15 billion and $1.02 billion respectively, alongside smaller exposures to institutions including the Islamic Development Bank and the International Fund for Agricultural Development.
Bilateral loans stood at $6.29 billion, or 12.97 percent of external debt. China’s Exim Bank was the largest bilateral creditor with $4.82 billion, while France, Japan, India and Germany were also listed. Loans from the China Development Bank amounted to $423.51 million.
Commercial borrowing remained substantial, with Eurobonds accounting for $17.32 billion, or 35.74 percent of external debt. Additional syndicated project loans and a facility from Deutsche Bank brought commercial borrowings higher.
Domestic debt dominates
Domestic debt rose more sharply in dollar terms, increasing from $52.67 billion in June to $55.47 billion in September. In naira terms, it climbed from N80.55 trillion to N81.82 trillion, representing 53.37 percent of total public debt.
Federal Government instruments accounted for the bulk of domestic obligations. FGN Bonds stood at N61.99 trillion, making up 79.67 percent of federal domestic debt. Of this, N60.64 trillion were naira-denominated bonds, while N1.35 trillion represented dollar bonds converted to naira.
Nigerian Treasury Bills totalled N12.68 trillion (16.30 percent), while FGN Sukuk stood at N1.29 trillion. FGN Savings Bonds and Green Bonds were valued at N97.46 billion and N62.36 billion respectively. Promissory notes amounted to N1.69 trillion.
The DMO added that domestic debt data for 35 states and the Federal Capital Territory were captured as of September 30, 2025, while Rivers State’s figures were as of June 30, 2025.
FG Shifts Borrowing Strategy
Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently said the government is adjusting its financing strategy to reduce reliance on costly external borrowing.
Speaking at the G-24 Technical Group Meeting in Abuja, Edun said:
“Nigeria is deliberately shifting away from a model overly reliant on expensive external borrowing toward a more resilient growth framework powered by domestic reforms, private capital, and diversified financing instruments,” Edun said.
He explained that the new direction aligns with evolving global financing trends that favour innovative funding structures, blended finance and expanded concessional support.
Despite domestic debt maintaining a larger share of the total stock, both internal and external borrowings increased during the third quarter of 2025, underscoring the continued fiscal pressures facing the country.
