By Boluwatife Oshadiya | August 9, 2026
Key Points
- Nigeria’s total public debt rose to N159.35 trillion in March 2026, up N9.96 trillion from a year earlier
- Domestic debt increased N2.55 trillion during the first quarter, driven largely by higher Treasury Bills issuance
- A stronger naira reduced the local-currency value of external debt by N2.48 trillion, limiting the quarterly increase in total debt
Main Story
Nigeria’s total public debt rose to N159.35 trillion as of March 31, 2026, as increased domestic borrowing offset the reduction in the naira value of external obligations caused by exchange-rate gains.
The latest figures from the Debt Management Office (DMO) show total public debt increased marginally from N159.28 trillion at the end of December 2025. In dollar terms, however, the debt stock rose from $110.97 billion to $114.95 billion during the quarter. Year-on-year, total debt increased by N9.96 trillion, or 6.67%, from N149.39 trillion in March 2025.
Domestic debt accounted for 54.85% of total public debt in March, compared with 53.27% three months earlier. The DMO reported that domestic obligations increased from N84.85 trillion to N87.40 trillion during the quarter, while Federal Government domestic debt rose by N2.39 trillion to N82.88 trillion.
Treasury Bills accounted for the largest increase among major Federal Government domestic debt instruments. Outstanding Treasury Bills climbed from N13.85 trillion in December 2025 to N16.57 trillion in March 2026, a 19.6% quarterly increase and 30.45% growth from a year earlier.
External debt told a different story. The dollar value increased marginally from $51.86 billion to $51.90 billion, but its naira value fell from N74.43 trillion to N71.95 trillion. The DMO attributed the difference to exchange-rate movements, with its external debt valuation based on N1,386.22/$ at March-end, compared with N1,435.26/$ at December-end.
The DMO data also shows that multilateral lenders remained Nigeria’s largest external creditors, with $23.86 billion outstanding, while Eurobonds accounted for $18.55 billion.
What’s Being Said
The source material provided for this report contains no direct quotation from the DMO, Federal Government, an independent analyst or private-sector stakeholder. BizWatch Nigeria therefore does not insert an unverified quotation.
The DMO data nevertheless indicates that the apparent stability in total debt during the quarter was heavily influenced by the stronger naira, rather than a reduction in borrowing activity.
What’s Next
- The Federal Government’s planned borrowing for 2026 remains a key indicator of how quickly domestic debt could expand
- Official debt data for subsequent quarters will show whether the increased reliance on domestic borrowing continues
- The composition of new borrowing, particularly Treasury Bills and other domestic instruments, will remain important for tracking the Federal Government’s financing strategy
Bottom Line
The Bottom Line: The near-flat quarterly increase in Nigeria’s headline debt stock masks a more significant shift toward domestic borrowing. The stronger naira temporarily reduced the local-currency burden of external debt, but the underlying rise in domestic obligations shows that Nigeria’s borrowing requirement remains substantial.
