Nigeria's total public debt has surged to N152.40 trillion as of June 30, 2025, reflecting a N3.01 trillion or 2% increase from N149.39 trillion recorded at the end of March 2025.
The latest quarterly figures from the Debt Management Office (DMO) highlight ongoing fiscal challenges, including foreign exchange volatility and global economic shocks, as key drivers behind the escalation.
The debt stock comprises both domestic and external components, with domestic debt standing at N78.76 trillion in March and external obligations influenced heavily by the naira's depreciation.
According to DMO data, the year-on-year growth remains steep at over 22%, underscoring the rapid accumulation since March 2024's N121.67 trillion.
While the exact breakdown for June has not been fully detailed in the initial release, analysts attribute the quarterly uptick to new borrowings for infrastructure and deficit financing under President Bola Ahmed Tinubu's administration.
In a recent rejoinder, the DMO addressed media reports on rising debt pressures, attributing much of the increase to FX fluctuations and external factors rather than unchecked spending.
"The government remains committed to prudent debt management that supports economic development," the office stated, emphasizing efforts to diversify funding sources and enhance revenue mobilization.
Economists warn that the trajectory could strain debt servicing costs, projected to consume a significant portion of the 2025 budget.
The International Monetary Fund (IMF) has repeatedly flagged Nigeria's debt sustainability, urging reforms in revenue generation and expenditure efficiency.
As of Q1, external debt—predominantly Eurobonds and multilateral loans—accounted for 47.3% of the total, with the naira value amplified by the Central Bank of Nigeria's exchange rate adjustments.
The DMO assures stakeholders that borrowing strategies align with the Medium-Term Debt Management Strategy, focusing on concessional loans and domestic market deepening to mitigate risks.
However, with inflation hovering above 30% and GDP growth lagging, calls for fiscal discipline have intensified among opposition lawmakers and civil society groups.
This latest milestone brings Nigeria closer to its self-imposed debt-to-GDP threshold of 40%, currently estimated at around 38% based on preliminary 2025 GDP projections.
The federal government, through the Ministry of Finance, is expected to outline mitigation measures in the upcoming supplementary budget discussions.
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