Nigeria’s complete public debt rose to N149.39 trillion as of March 31, 2025, marking a year-on-year improve of N27.72 trillion or 22.8% when in comparison with the N121.67 trillion recorded within the corresponding interval of 2024.
The newest figures from the Debt Administration Workplace (DMO) additionally point out a quarter-on-quarter improve of N4.72 trillion or 3.3% from N144.67 trillion as of December 31, 2024.
This constant upward trajectory in Nigeria’s debt inventory displays each recent borrowings and the affect of a depreciating trade price on exterior debt obligations.
The surge comes amid ongoing fiscal pressures, rising income, and continued dependence on each native and international borrowing to fund the nationwide funds.
Exterior debt climbs to N70.63 trillion, largely on forex results
- Nigeria’s exterior debt as of March 31, 2025, stood at N70.63 trillion ($45.98 billion), a big leap from N56.02 trillion ($42.12 billion) in the identical interval in 2024.
- This represents a year-on-year improve of N14.61 trillion or 26.1%. In quarter-on-quarter phrases, exterior debt rose modestly from N70.29 trillion in December 2024 — a marginal improve of N344 billion or 0.5%.
Nonetheless, whereas the dollar-denominated debt rose by $3.86 billion year-on-year, the a lot steeper improve in naira phrases highlights the underlying affect of international trade depreciation on Nigeria’s exterior liabilities.
- The Central Bank of Nigeria (CBN)’s official trade price used for changing debt in Q1 2024 was N1,330.26 per US greenback. Though the particular price for Q1 2025 was not disclosed, the rising hole in naira phrases factors to a weakened trade price, which immediately amplifies Nigeria’s reimbursement obligations on its greenback and euro-denominated loans.
- Exterior debt obligations embody borrowings from multilateral establishments such because the World Bank and the African Growth Bank, bilateral sources, and industrial collectors, together with Eurobond buyers. The burden of servicing these money owed in naira phrases has develop into heavier because the native forex continues to slip in worth, a pattern that would deepen if reforms geared toward stabilising the forex don’t yield outcomes.
Home debt nears N79 trillion, pushed by recent borrowings
- The home part of Nigeria’s debt additionally maintained an upward pattern, reaching N78.76 trillion ($51.26 billion) on the finish of March 2025.
- This displays a year-on-year improve of N13.11 trillion or 20% from N65.65 trillion ($49.35 billion) in March 2024. On a quarterly foundation, home debt rose by N4.38 trillion or 5.9%, up from N74.38 trillion in December 2024.
- The Federal Authorities alone accounted for N74.89 trillion of this complete, whereas the 36 states and the Federal Capital Territory (FCT) collectively held N3.87 trillion. Curiously, state-level home debt declined barely from N3.97 trillion in This autumn 2024 and from N4.07 trillion in Q1 2024, settling at N3.87 trillion by the top of March 2025.
- The discount displays improved debt reimbursement efforts by subnational governments, largely supported by increased inflows from the Federation Account Allocation Committee (FAAC).
- Home borrowing sometimes consists of presidency securities comparable to Treasury Payments, FGN Bonds, Sukuk, and Inexperienced Bonds. These devices are used to plug the nation’s fiscal deficit and are usually seen as safer from trade price danger, though they arrive with their very own curiosity value burdens.
What you must know
As of the primary quarter of 2025, the composition of the overall public debt confirmed a near-even break up, with home debt accounting for 52.7% and exterior debt making up 47.3%. This represents a slight shift from the construction recorded in March 2024, when home debt had the next share of 54% whereas exterior debt stood at 46%.
The rising share of exterior debt — particularly in naira phrases — underlines the forex danger that Nigeria faces with continued reliance on international borrowing. On the identical time, the constant improve in home debt indicators the federal government’s efforts to lift funds from the native capital market, regardless of issues about excessive debt servicing prices and crowding out of personal funding.
Nigeria’s public debt trajectory continues to lift questions on fiscal sustainability. With the overall debt inventory nearing the N150 trillion mark, issues persist over the rising value of debt servicing, which now consumes a big share of the nationwide funds.
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