Nigeria’s total public debt rose to N149.39 trillion at the end of the first quarter of 2025, according to figures released by the Debt Management Office (DMO) on Friday.
This represents a year-on-year increase of N27.72 trillion or 22.8 per cent from N121.67 trillion recorded in Q1 2024. It also marks a quarter-on-quarter rise of N4.72 trillion or 3.3 per cent compared to N144.67 trillion in December 2024.
The continuous rise in debt has been attributed to new borrowings by the Federal Government and the depreciation of the naira, which significantly increased the local currency value of external debt.
External debt stood at N70.63 trillion ($45.98 billion) in March 2025, up from N56.02 trillion ($42.12 billion) in the same period of 2024. This translates to a year-on-year increase of N14.61 trillion or 26.1 per cent.
Compared to the previous quarter, it rose marginally by N344 billion or 0.5 per cent. Although the increase in dollar terms was only $3.86 billion, the naira depreciation amplified the figure in local terms.
While the DMO did not disclose the exchange rate used in Q1 2025, the previous rate of N1,330.26/$1 in Q1 2024 indicates a weaker naira was likely used, reflecting ongoing currency volatility.
Nigeria’s external debt includes loans from multilateral institutions such as the World Bank and African Development Bank, bilateral partners, and commercial instruments like Eurobonds.
The rising cost of servicing this debt, driven by currency depreciation, has added to fiscal concerns amid the country’s efforts to improve foreign exchange liquidity and stabilise the naira.
Domestic debt also increased, reaching N78.76 trillion ($51.26 billion) in March 2025, up from N65.65 trillion ($49.35 billion) a year earlier. This represents a N13.11 trillion or 20 per cent rise year-on-year, and a N4.38 trillion or 5.9 per cent increase from N74.38 trillion in December 2024.
The Federal Government accounted for N74.89 trillion of this figure, while state governments and the Federal Capital Territory held N3.87 trillion, a slight decline from previous quarters.
Domestic debt, which includes instruments such as Federal Government Bonds, Treasury Bills, Sukuk, and Green Bonds, is less vulnerable to exchange rate changes but poses its own challenges, including higher interest costs and potential crowding out of private sector borrowing.
By March 2025, domestic debt made up 52.7 per cent of the total public debt, while external debt accounted for 47.3 per cent.
This marks a slight shift from March 2024, when the ratios were 54 per cent and 46 per cent respectively, underscoring increased exposure to currency risk and continued pressure on Nigeria’s fiscal position.
