Nigeria’s total public debt increased slightly to N159.35 trillion in the first quarter of 2026, according to the latest report from the Debt Management Office (DMO).
The figure represents a marginal increase of about N71.6 billion compared with the N159.28 trillion recorded at the end of December 2025. In dollar terms, Nigeria’s total public debt stood at approximately $114.95 billion as of March 31, 2026.
Despite the relatively small quarterly increase, the rising level of foreign debt has continued to attract attention because of its potential impact on government finances, debt servicing and the country’s ability to fund development projects.
Nigeria’s external debt stood at $51.90 billion, equivalent to about N71.95 trillion, during the period under review.
Foreign debt accounted for about 45.15 per cent of the country’s total public debt. Multilateral institutions made up the largest portion, with obligations of $23.86 billion.
Commercial creditors, which include Eurobond-related obligations, accounted for $18.55 billion, while bilateral lenders were owed about $6.59 billion. Syndicated loans made up another $2.86 billion.
China remains one of Nigeria’s major bilateral lenders. The country owed about $4.95 billion to China Exim Bank and approximately $507.52 million to China Development Bank.
The DMO used an official exchange rate of N1,386.2156 to one dollar to convert the external debt into naira.
Although foreign borrowing is significant, domestic debt remained the larger part of Nigeria’s debt portfolio.
Domestic debt stood at approximately N87.40 trillion, representing 54.85 per cent of total public debt.
The Federal Government accounted for N82.88 trillion, while states and the Federal Capital Territory owed about N4.52 trillion.
Federal Government bonds remained the biggest domestic borrowing instrument, with outstanding obligations of about N63.45 trillion. Nigerian Treasury Bills followed with approximately N16.57 trillion.
Other instruments included Sukuk, savings bonds and promissory notes.
The latest figures highlight the continued expansion of Nigeria’s debt burden over the past few years.
In June 2023, total public debt stood at about N87.38 trillion. By March 2026, the figure had climbed to N159.35 trillion.
The DMO also noted that Nigeria’s fiscal deficit widened to N13.51 trillion in 2024, putting pressure on the government’s finances.
A growing debt burden means the government may have to dedicate more revenue to servicing its obligations. This could reduce the funds available for infrastructure, healthcare, education and other development programmes.
Foreign commercial debt also creates additional risks because exchange-rate movements can increase the naira value of dollar-denominated obligations.
The DMO has stressed the importance of carefully managing new borrowing while improving government revenue.
Analysts have also warned that heavy reliance on borrowing could limit Nigeria’s fiscal space, especially if global interest rates remain high or the naira weakens.
For Nigeria, the challenge is now to balance the need to finance important projects with the responsibility of keeping debt at a manageable level.
The DMO has therefore encouraged stronger revenue mobilisation, improved fiscal discipline and greater use of concessional financing where possible.
