Nigeria’s public debt stock rose to N152.39 trillion in the second quarter of 2025, up from N149.38 trillion recorded in the first quarter, according to fresh figures released on Monday by the National Bureau of Statistics (NBS).
The 2.01% quarter-on-quarter increase underscores the country’s growing domestic and external borrowing requirements amid persistent fiscal pressures.
The NBS breakdown shows that external debt stood at N71.84 trillion ($46.98 billion), while domestic debt rose to N80.55 trillion ($52.67 billion) in the review period. In naira terms, external obligations accounted for 47.14% of the total debt stock, while domestic borrowings made up 52.86%.
Lagos State maintained its lead as Nigeria’s most indebted subnational, with a domestic debt profile of N1.04 trillion in Q2 2025. Rivers State followed with N364.39 billion.
Jigawa State remained the least indebted, posting N852.49 million in domestic liabilities, while Ondo State ranked next with N10.64 billion.
In terms of external debt, Lagos also topped the list with $1.04 billion, followed by Kaduna State at $658.70 million. The Federal Capital Territory (FCT) recorded the lowest external debt at $19.26 million.
Data from the Debt Management Office (DMO) revealed that the Federal Government raised N6.17 trillion from the domestic market in the first half of 2025.
The borrowings were secured through FGN Bonds, Nigerian Treasury Bills (NTBs), and Promissory Notes, which form key components of the national domestic debt structure.
The DMO noted that N4.48 trillion was raised in Q1, while an additional N1.70 trillion was sourced in Q2 — representing a 2.26% increase from the previous quarter.
External Debt Service Hits $932.1m in Q2
Nigeria’s external debt servicing surged to $932.1 million in Q2 2025.
A breakdown from the DMO shows that:
Multilateral creditors received $629.38 million (about 68% of total payments).
Bilateral creditors, including JICA, China Development Bank and AFD, received a combined $41.18 million.
Commercial creditors, including Eurobond holders and Unicredit SPA, were paid $261.55 million.
Economic analysts warn that Nigeria’s debt profile is inching toward a potentially unsustainable path, driven by weak revenue mobilisation, escalating debt service costs and structural inefficiencies.
Speaking at the Q4 2025 Virtual Symposium of the Capital Market Academics of Nigeria (CMAN), experts noted that although Nigeria’s debt-to-GDP ratio remains within global limits, the country’s dwindling fiscal capacity and widening financing needs pose increasing risks to long-term stability.
They cautioned that without significant improvements in revenue generation and prudent fiscal management, Nigeria’s debt burden could become more difficult to manage in the coming years.
