Nigeria’s total public debt has climbed to a staggering N149.39 trillion as of March 31, 2025, representing a year-on-year increase of N27.72 trillion or 22.8 per cent, according to the latest figures released by the Debt Management Office (DMO).
The report also reveals a quarter-on-quarter rise of N4.72 trillion or 3.3 per cent, up from N144.67 trillion recorded at the end of December 2024.
The persistent increase reflects a combination of new borrowings and the depreciating value of the naira, which continues to inflate the cost of servicing Nigeria’s foreign debts.
External debt obligations now stand at N70.63 trillion ($45.98 billion)—a sharp 26.1 per cent increase from N56.02 trillion ($42.12 billion) in the same period last year.
While the dollar component rose by $3.86 billion, the much steeper increase in naira terms points to a weakened exchange rate, compounding Nigeria’s repayment burden.
Although the Central Bank of Nigeria (CBN) had used an official rate of N1,330.26/$ for Q1 2024, the exchange rate used for Q1 2025 has not been disclosed. Still, analysts say the widening naira cost of debt is a clear indicator of further currency depreciation.
Nigeria’s external loans include funds from multilateral institutions such as the World Bank, African Development Bank, bilateral lenders, and Eurobond investors.
As the naira continues to fall, the cost of repaying these debts in local currency terms becomes increasingly heavy.
On the domestic front, debt rose to N78.76 trillion ($51.26 billion), marking a 20 per cent rise from N65.65 trillion ($49.35 billion) in Q1 2024.
Quarter-on-quarter, this represents a 5.9 per cent increase, up from N74.38 trillion in December 2024.
The Federal Government accounts for N74.89 trillion of the domestic debt, while state governments and the Federal Capital Territory (FCT) collectively owe N3.87 trillion, a slight decline from N3.97 trillion in Q4 2024.
The drop in subnational debt is attributed to improved debt servicing efforts, boosted by higher federal allocations.
Domestic debt is primarily raised through instruments like Treasury Bills, FGN Bonds, Sukuk, and Green Bonds, which, while shielded from forex volatility, still carry significant interest costs.
Analysts warn that unless structural reforms are accelerated, particularly those targeting revenue generation and exchange rate stability, Nigeria’s debt trajectory may become unsustainable, further straining the country’s fiscal health and economic recovery prospects.