Nigeria’s public debt rises to N149.39tn in Q1 2025

Nigeria’s total public debt has climbed to N149.39 trillion as of March 31, 2025, according to the latest data from the Debt Management Office (DMO).

This represents a year-on-year increase of N27.72 trillion or 22.8%, up from N121.67 trillion in Q1 2024. On a quarterly basis, the debt rose by N4.72 trillion or 3.3% from the N144.67 trillion recorded at the end of December 2024.

The DMO attributed the continued rise in debt to fresh borrowing by the Federal Government and the depreciation of the naira, which has significantly inflated the local currency value of Nigeria’s external loans.

External Debt Surges Due to Weak Naira

External debt stood at N70.63 trillion ($45.98 billion) in Q1 2025, up from N56.02 trillion ($42.12 billion) in the same period of 2024. This reflects a 26.1% increase in naira terms year-on-year, though the actual dollar increase was just $3.86 billion.

Quarter-on-quarter, external debt saw a marginal increase of N344 billion or 0.5%, from N70.29 trillion in December 2024. The rise in naira value is mainly due to currency depreciation, as the Central Bank used an exchange rate of N1,330.26/$1 in Q1 2024. Though the Q1 2025 rate wasn’t disclosed, the data suggests a weaker naira was applied.

Nigeria’s external loans come from multilateral sources like the World Bank and AfDB, bilateral creditors, and commercial instruments such as Eurobonds.

Domestic Debt Also on the Rise

Domestic debt increased to N78.76 trillion ($51.26 billion) in March 2025 from N65.65 trillion ($49.35 billion) a year earlier, reflecting a 20% rise or N13.11 trillion. Compared to the previous quarter, it grew by N4.38 trillion or 5.9%, from N74.38 trillion.

Of this, the Federal Government is responsible for N74.89 trillion, while subnational governments, including the FCT, owe N3.87 trillion — a slight decline from N3.97 trillion in Q4 2024 and N4.07 trillion in Q1 2024. This could indicate improved debt servicing or reduced borrowing by states.

Domestic debt instruments include Federal Government Bonds, Treasury Bills, Sukuk, and Green Bonds, which are used to fund budget deficits but may limit private sector access to credit and carry high interest costs.

Debt Profile Shows Higher Currency Risk

As of March 2025, domestic debt made up 52.7% of Nigeria’s total public debt, while external debt accounted for 47.3%. This marks a slight shift from the 54:46 ratio recorded in March 2024, pointing to increasing currency exposure.

With mounting fiscal pressure and reliance on borrowing — both locally and abroad — analysts warn that Nigeria’s rising debt burden, especially in the context of currency depreciation and high debt servicing costs, could place further strain on public finances.