The Debt Management Office (DMO) has released a fresh update on Nigeria’s financial position, revealing a significant surge in the country’s public debt.
As of March 31, 2025, Nigeria’s total public debt stock has skyrocketed to a staggering ₦149.39 trillion, which is approximately $97.24 billion when converted to U.S. dollars.
This figure marks a noticeable increase compared to the previous quarter, raising concerns among economic experts, investors, and ordinary citizens alike.
A Closer Look at the Debt Breakdown
According to the DMO’s official report, Nigeria’s public debt is divided into two major categories:
– External debt: ₦70.63 trillion (about 47.3% of total debt)
– Domestic debt: ₦78.76 trillion (52.7%), with the federal government accounting for ₦74.89 trillion and the states plus the FCT holding ₦3.87 trillion.
This means that over half of Nigeria’s debt is now owed to local creditors, a trend that has been growing in recent years.
The remaining portion is made up of loans from international financial institutions, development partners, and Eurobond markets.
What’s Fueling the Rise?
Analysts point to continued borrowing by both the federal and state governments as the main driver of the increase.
While these loans are often justified as necessary for development projects and infrastructure, the growing debt burden raises questions about long-term sustainability and the country’s ability to repay.
Moreover, Nigeria’s debt servicing costs continue to take up a large chunk of the national budget, leaving less room for critical investments in sectors like education, healthcare, and job creation.
Are We in Danger?
Interestingly, while the figures are eye-watering, the DMO maintains that Nigeria’s debt is still within a manageable range.
The country’s debt-to-GDP ratio remains under 40%, which is considered safe by global standards.
However, the real concern lies in how much of the budget is spent on repaying these debts—and how little is left for the average Nigerian to feel the impact of government spending.
Why Should Nigerians Care?
When public debt rises, it doesn’t just affect figures on a government spreadsheet—it impacts everyone.
From rising taxes to reduced public services and even a potential spike in inflation, the effects trickle down to everyday life.
And with domestic borrowing now higher than ever, it means the government is heavily relying on the Nigerian financial system, including commercial banks and pension funds, to finance its activities.