KEY POINTS

• Nigeria’s public debt reached N153.29 trillion in Q3 2025, rising by N900 billion in three months.
• Domestic debt accounts for the larger share, with the federal government holding most of it.
• Borrowing continues amid infrastructure funding needs and a projected N23.85 trillion 2026 deficit.

Nigeria’s total public debt rose to N153.29 trillion as of September 30, 2025, according to the Debt Management Office.

The figure represents an increase of N900 billion (0.59%) compared with N152.39 trillion recorded in June 2025, reflecting continued government borrowing amid fiscal pressures.

The stock covers both domestic and external liabilities accumulated by the federal government, the 36 states, and the Federal Capital Territory.

Analysts attribute the upward trend largely to the government’s need to finance infrastructure projects and plug persistent budget deficits.

The 2026 fiscal deficit is projected at N23.85 trillion, equivalent to 4.28% of GDP, underscoring the administration’s reliance on borrowing to meet spending commitments.

Political and Public Debate Intensifies about the debt

Borrowing levels remain a major topic of public and policy debate in Nigeria, with critics questioning debt sustainability and revenue mobilisation strategies.

Earlier in 2025, the DMO dismissed claims that it had jumped from N21 trillion to N142 trillion under President Bola Tinubu, clarifying that the actual figure when he assumed office was N87 trillion.

In May, the National Orientation Agency reported slight debt relief linked to improved allocations from the Federation Account Allocation Committee, which distributes revenue among federal, state, and local governments.

However, the latest DMO figures suggest the broader trajectory remains upward.

Public discourse around it has become more politically charged. Earlier in 2025, the DMO rejected claims that the country’s debt ballooned from N21 trillion to N142 trillion under President Bola Tinubu, clarifying that the verified figure when he assumed office was N87 trillion.

Officials argued that misinterpretations often arise from confusion between nominal debt values, currency adjustments, and consolidated national totals that include state and federal obligations.