By Ayo Kehinde
Nigeria’s combined domestic and external debts rose to N153.29 trillion as of September 30, 2025, representing an increase of N900 billion or 0.59 percent within three months, according to the Debt Management Office (DMO).
In a statement released on its website, the debt office said the increase was driven by growth in both domestic and external borrowings of the federal government, the 36 states, and the Federal Capital Territory (FCT).
It explained that as of the third quarter of 2025, total domestic debt stood at N81.81 trillion (about $55.47 billion), while external debt amounted to N71.47 trillion (approximately $48.46 billion).
A further breakdown showed that the federal government accounted for the largest share of domestic debt, which rose to N77.81 trillion in September 2025 from N76.58 trillion recorded at the end of June.
Similarly, the domestic debt stock of the states and the FCT increased slightly from N3.96 trillion in June to N4 trillion as of September 2025.
It is worth noting that the DMO had clarified in January 2025 that Nigeria’s total public debt stood at N87 trillion when President Bola Tinubu assumed office in 2023.
The rising public debt profile reflects the federal government’s increasing borrowing to finance critical infrastructure projects amid persistent fiscal pressures and widening budget deficits.
Nigeria’s 2026 budget deficit is estimated at N23.85 trillion, representing about 4.28 percent of the country’s Gross Domestic Product (GDP), further intensifying concerns over revenue shortfalls and debt sustainability.
