The DMO data reveals that Nigeria’s debt rose from N153.29 trillion in September 2025 to N159.28 trillion in December 2025, marking a quarter-on-quarter increase of N5.98 trillion, or 3.9 percent. In dollar terms, the debt also grew from $103.94 billion to $110.97 billion within the same period.
Nigeria’s total public debt has climbed to N159.28 trillion as of December 31, 2025, translating to an average burden of about N724,000 for every citizen, according to the latest figures released by the Debt Management Office (DMO).
An analysis of the data shows a steady rise in the country’s debt profile, largely driven by increased domestic borrowing. With Nigeria’s population estimated at about 220 million, the figures underscore the growing financial obligations tied to each citizen.
The current debt stock does not include the recently approved N8.3 trillion borrowing from the United Arab Emirates and UK Export Finance, indicating that Nigeria’s total debt could increase further in subsequent reports.
Rising Debt Profile
The DMO data reveals that Nigeria’s debt rose from N153.29 trillion in September 2025 to N159.28 trillion in December 2025, marking a quarter-on-quarter increase of N5.98 trillion, or 3.9 percent. In dollar terms, the debt also grew from $103.94 billion to $110.97 billion within the same period.
On a year-on-year basis, the country’s public debt increased by N14.61 trillion, representing a 10.1 percent rise from the N144.67 trillion recorded in December 2024.
Domestic vs External Debt
A breakdown of the figures shows that domestic debt remains the largest component, accounting for 53.27 percent of the total debt. It rose to N84.85 trillion in December 2025, up from N81.82 trillion in September 2025 and N74.38 trillion in December 2024.
The Federal Government holds the bulk of the domestic debt at N80.49 trillion, while states and the Federal Capital Territory account for N4.36 trillion. This trend highlights Nigeria’s increasing reliance on local borrowing to finance fiscal gaps.
External debt, which makes up 46.73 percent of the total, stood at N74.43 trillion. This represents an increase from N71.48 trillion in September 2025 and N70.29 trillion in December 2024. In dollar terms, external debt rose to $51.86 billion, with the Federal Government accounting for N66.27 trillion and states and the FCT responsible for N8.16 trillion.
Concerns Over Sustainability
The continued expansion of Nigeria’s debt profile has raised concerns about fiscal sustainability, particularly in the face of rising debt servicing costs and pressure on government revenue.
In its 2026 macroeconomic outlook, the Central Bank of Nigeria (CBN) projected a debt-to-GDP ratio of about 34 percent, with foreign reserves expected to rise to $51 billion. The debt-to-GDP ratio is a key indicator used to measure a country’s ability to service its debt relative to its economic output.
The CBN further projected that public debt could reach 34.68 percent of GDP by the end of 2026, up from 33.98 percent recorded in June 2025, largely due to anticipated new borrowings.
‘Unborn Generations Will Pay’
Financial expert Paul Alaje warned that the growing debt burden would have long-term implications for Nigerians, including future generations.
According to him, the current debt stock represents active loans that must be serviced, with repayment costs ultimately borne by citizens through taxation and public revenue.
He noted that as debt levels rise, so do servicing obligations, placing additional strain on the economy. Alaje also warned that Nigeria’s debt could exceed $160 billion by the first quarter of 2026, based on new and existing borrowing.
“The entire citizens will pay, including those yet to join the workforce,” he said, adding that future generations may inherit the burden if the debt persists over decades.
Borrowing Amid Revenue Growth
Alaje explained that continued borrowing, despite reported increases in government revenue, is often due to timing gaps between revenue generation and expenditure needs. He described borrowing as a stopgap measure to meet urgent obligations such as salary payments and infrastructure demands.
However, he stressed that the core issue lies in the mismatch between government revenue and growing national needs, particularly in sectors such as infrastructure, energy, and transportation.
As Nigeria’s debt continues to rise, analysts say the focus must shift toward improving revenue generation, managing expenditure, and ensuring that borrowed funds are effectively utilized to support economic growth.
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