Nigeria’s total public debt climbed to N152.39 trillion in the second quarter of 2025, rising from N149.38 trillion in the first quarter, according to new figures released by the National Bureau of Statistics.
The 2.01% quarter-on-quarter increase highlights the steady growth in both domestic and external borrowing.
The NBS report shows external debt at N71.84 trillion ($46.98 billion), while domestic debt hit N80.55 trillion ($52.67 billion) during the period. External obligations accounted for 47.14% of total public debt, with domestic borrowings making up 52.86%, underscoring Nigeria’s reliance on local and foreign credit to finance its obligations.
Subnational Debt: Lagos Leads Again
Lagos State remained the most indebted subnational, posting N1.04 trillion in domestic borrowings in Q2 2025. Rivers State followed with N364.39 billion, reflecting the weight of state-level fiscal pressures.
At the lower end, Jigawa recorded the smallest domestic debt at N852.49 million, while Ondo State came next with N10.64 billion. Lagos also topped external debt among states at $1.04 billion, ahead of Kaduna’s $658.70 million, while the Federal Capital Territory registered the lowest external debt at $19.26 million.
FG Borrowed N6.17 Trillion in Six Months
Data from the Debt Management Office revealed that the Federal Government raised N6.17 trillion from the domestic debt market in the first half of 2025. The government relied heavily on FGN Bonds, Nigerian Treasury Bills, and Promissory Notes, strengthening the domestic debt structure.
The DMO added that N4.48 trillion was raised in Q1 2025, with another N1.70 trillion secured in Q2. This represents a 2.26% increase in borrowing between the two quarters, reflecting the government’s expanding financing needs.
Debt Service Payments Surge
Nigeria’s external debt service payments climbed to $932.1 million in Q2 2025, according to Nairametrics’ reporting. Multilateral creditors received $629.38 million, accounting for nearly 68% of total payments during the quarter.
Bilateral creditors, including JICA, China Development Bank, and AFD, were paid a combined $41.18 million, while commercial lenders, including Eurobond holders and Unicredit SPA, received $261.55 million. The figures reflect the mounting cost of servicing Nigeria’s growing external obligations.
Rising Concerns Over Debt Sustainability
Experts have warned that Nigeria’s rising debt is approaching a danger zone despite an official debt-to-GDP ratio that still sits within global norms. Analysts at the Capital Market Academics of Nigeria Q4 2025 Virtual Symposium noted that “Nigeria’s debt trajectory is becoming increasingly fragile due to weak revenues, rising debt servicing costs, and persistent structural inefficiencies.”
They added that growing borrowing needs and sluggish fiscal reforms place additional pressure on the government’s ability to manage future repayments. The concerns reinforce the urgency for stronger revenue generation and a more efficient public finance system.
