Nigeria’s rising debt profile has taken center stage following the latest figures released by the Debt Management Office (DMO), revealing that the country’s total public debt climbed to ₦159.28 trillion as of December 31, 2025.

The new figure marks a noticeable increase from the ₦153.29 trillion recorded at the end of September 2025, highlighting the government’s continued dependence on borrowing to meet fiscal obligations and sustain economic activities.

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Data analysis shows that the debt stock grew by ₦5.98 trillion within three months, representing a 3.9 percent quarter-on-quarter increase. The DMO clarified that the December figures remain provisional and were calculated using the Central Bank of Nigeria’s official exchange rate of ₦1,435.2571 per dollar, compared to ₦1,474.85/$ used for the September data.

Nigeria Debt Dynamics Show Steady Expansion

On a year-on-year basis, Nigeria’s public debt surged significantly by ₦14.61 trillion, reflecting a 10.1 percent rise from ₦144.67 trillion in December 2024 to ₦159.28 trillion in December 2025.

In dollar terms, the increase is equally striking, with total debt rising from $94.23 billion to $110.97 billion within one year, indicating a $16.75 billion jump.

Domestic borrowing continued to dominate Nigeria’s debt structure. It rose from ₦81.82 trillion in September 2025 to ₦84.85 trillion in December 2025, reflecting a ₦3.03 trillion increase or 3.7 percent growth within the quarter.

On a yearly basis, domestic debt expanded sharply from ₦74.38 trillion in December 2024, representing a ₦10.47 trillion increase or 14.1 percent. In dollar terms, domestic debt also climbed from $48.44 billion in December 2024 to $59.12 billion in December 2025.

A closer breakdown reveals that the Federal Government holds the bulk of domestic debt, accounting for ₦80.49 trillion, which represents over half of the total public debt at 50.53 percent. Meanwhile, states and the Federal Capital Territory collectively account for ₦4.36 trillion.

External debt also recorded notable growth, rising to ₦74.43 trillion as of December 2025. This represents 46.73 percent of the total public debt. The figure increased by ₦2.95 trillion from ₦71.48 trillion in September 2025 and by ₦4.14 trillion from ₦70.29 trillion in December 2024.

In dollar terms, external debt rose from $45.78 billion in December 2024 to $51.86 billion in December 2025, further underscoring Nigeria’s increasing exposure to foreign borrowing.

The Federal Government remains the dominant player in external debt as well, accounting for ₦66.27 trillion, while states and the FCT hold ₦8.16 trillion.

Despite the steady rise in borrowing, the overall structure of Nigeria’s debt portfolio has remained relatively stable. Domestic debt accounted for 53.27 percent of the total debt in December 2025, slightly below the 53.37 percent recorded in September but higher than 51.41 percent in December 2024.

Conversely, external debt stood at 46.73 percent, reflecting a marginal increase from 46.63 percent in September but lower than 48.59 percent recorded a year earlier.

Economic analysts warn that while borrowing remains a key tool for financing development and budget deficits, the growing debt burden raises concerns about sustainability, debt servicing costs, and long-term fiscal stability.

As Nigeria continues to navigate economic challenges, the rising debt profile is expected to remain a critical issue in policy discussions, especially regarding revenue generation, fiscal discipline, and economic reforms.