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.
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.
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.
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.
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.
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.