Nigeria’s total public debt rose to N152.39 trillion in the second quarter of 2025, up from N149.38 trillion recorded in the first quarter, according to the National Bureau of Statistics (NBS). The 2.01% quarter-on-quarter increase reflects the country’s growing domestic and external borrowing commitments.
The NBS report shows that external debt stood at N71.84 trillion ($46.98 billion), accounting for 47.14% of total public debt, while domestic debt reached N80.55 trillion ($52.67 billion), representing 52.86%.
At the subnational level, Lagos State remained the most indebted, with domestic liabilities of N1.04 trillion, followed by Rivers State at N364.39 billion. Jigawa State recorded the lowest domestic debt at N852.49 million. Externally, Lagos also led with $1.04 billion, while the Federal Capital Territory had the smallest exposure at $19.26 million.
The Debt Management Office (DMO) reported that the federal government borrowed N6.17 trillion from the domestic market in the first half of 2025, mainly through FGN Bonds, Treasury Bills, and Promissory Notes. This included N4.48 trillion in Q1 and N1.70 trillion in Q2, representing a 2.26% increase over the previous quarter.
External debt service payments surged to $932.1 million in Q2, with multilateral creditors receiving $629.38 million, bilateral creditors $41.18 million, and commercial lenders, including Eurobond holders, $261.55 million.
Experts warn that Nigeria’s debt trajectory is becoming increasingly fragile. Weak revenue generation, rising servicing costs, and structural inefficiencies have heightened concerns over long-term sustainability, even as official indicators suggest the debt-to-GDP ratio remains within globally acceptable thresholds.
