₦airaland Forum

Nigeria’s total public debt rose to N149.39 trillion as of March 31, 2025, marking a year-on-year increase of N27.72 trillion or 22.8% when compared to the N121.67 trillion recorded in the corresponding period of 2024.

The latest figures from the Debt Management Office (DMO) also indicate a quarter-on-quarter increase of N4.72 trillion or 3.3% from N144.67 trillion as of December 31, 2024.

This consistent upward trajectory in Nigeria’s debt stock reflects both fresh borrowings and the impact of a depreciating exchange rate on external debt obligations.


The surge comes amid ongoing fiscal pressures, rising revenue, and continued dependence on both local and foreign borrowing to fund the national budget.

External debt climbs to N70.63 trillion, largely on currency effects

Nigeria’s external debt as of March 31, 2025, stood at N70.63 trillion ($45.98 billion), a significant jump from N56.02 trillion ($42.12 billion) in the same period in 2024.

This represents a year-on-year increase of N14.61 trillion or 26.1%. In quarter-on-quarter terms, external debt rose modestly from N70.29 trillion in December 2024 — a marginal increase of N344 billion or 0.5%.

However, while the dollar-denominated debt rose by $3.86 billion year-on-year, the much steeper increase in naira terms highlights the underlying impact of foreign exchange depreciation on Nigeria’s external liabilities.


The Central Bank of Nigeria (CBN)’s official exchange rate used for converting debt in Q1 2024 was N1,330.26 per US dollar.

Although the specific rate for Q1 2025 was not disclosed, the growing gap in naira terms points to a weakened exchange rate, which directly amplifies Nigeria’s repayment obligations on its dollar and euro-denominated loans.

External debt obligations include borrowings from multilateral institutions such as the World Bank and the African Development Bank, bilateral sources, and commercial creditors, including Eurobond investors.
The burden of servicing these debts in naira terms has become heavier as the local currency continues to slide in value, a trend that could deepen if reforms aimed at stabilising the currency do not yield results.

Domestic debt nears N79 trillion, driven by fresh borrowings

The domestic component of Nigeria’s debt also maintained an upward trend, reaching N78.76 trillion ($51.26 billion) at the end of March 2025.

This reflects a year-on-year increase of N13.11 trillion or 20% from N65.65 trillion ($49.35 billion) in March 2024. On a quarterly basis, domestic debt rose by N4.38 trillion or 5.9%, up from N74.38 trillion in December 2024.

The Federal Government alone accounted for N74.89 trillion of this total, while the 36 states and the Federal Capital Territory (FCT) jointly held N3.87 trillion.

Interestingly, state-level domestic debt declined slightly from N3.97 trillion in Q4 2024 and from N4.07 trillion in Q1 2024. This may suggest more prudent borrowing by subnational governments or better debt service performance in the period under review.

Domestic borrowing typically consists of government securities such as Treasury Bills, FGN Bonds, Sukuk, and Green Bonds. These instruments are used to plug the country’s fiscal deficit and are generally seen as safer from exchange rate risk, although they come with their own interest cost burdens.

What you should know
As of the first quarter of 2025, the composition of the total public debt showed a near-even split, with domestic debt accounting for 52.7% and external debt making up 47.3%. This represents a slight shift from the structure recorded in March 2024, when domestic debt had a higher share of 54% while external debt stood at 46%.

The rising share of external debt — especially in naira terms — underlines the currency risk that Nigeria faces with continued reliance on foreign borrowing. At the same time, the consistent increase in domestic debt signals the government’s efforts to raise funds from the local capital market, despite concerns about high debt servicing costs and crowding out of private investment.

Nigeria’s public debt trajectory continues to raise questions about fiscal sustainability. With the total debt stock nearing the N150 trillion mark, concerns persist over the rising cost of debt servicing, which now consumes a significant share of the national budget.