Nigeria's total public debt climbed to N159.28 trillion as of December 31, 2025, the Debt Management Office announced on Tuesday. The figure represents a sharp increase from N153.29 trillion recorded just three months earlier at the end of September 2025. This means the country added roughly N5.99 trillion to its debt burden in just one quarter.
The DMO released the updated figures showing the steady accumulation of debt obligations across both domestic and external borrowing channels. Domestic borrowing accounted for the bulk of this increase, reflecting the federal government's reliance on local financing to fund its operations and capital projects. The trend underscores the pressure mounting on Nigeria's fiscal position as debt servicing costs continue to consume an ever larger share of government revenue.
The debt figure encompasses borrowings by the federal government, states, and the Federal Capital Territory. External debt forms part of the total, though domestic borrowing remains the primary driver of the growth recorded in the final quarter of 2025. The DMO tracks these figures regularly to provide transparency on the nation's debt position to investors, policymakers, and the general public.
Analysts have raised concerns about the trajectory of Nigeria's debt accumulation. With debt servicing already consuming over 90 percent of government revenue in recent months, the ability to fund essential services and development projects faces serious constraints. The rising debt burden also limits fiscal space for the government to respond to economic shocks or invest in critical infrastructure needed for long-term growth.
The increase from N153.29 trillion to N159.28 trillion in three months suggests an acceleration in borrowing activity during the final quarter of the year. The federal government typically increases spending during the last months of the fiscal year to complete projects and meet budgetary allocations. This seasonal pattern, combined with the need to finance recurrent expenditures, explains part of the quarterly surge.
Economists have warned that without significant improvements in government revenue collection and stricter expenditure controls, the debt trajectory could become unsustainable. The federal government has committed to fiscal reforms including improved tax administration and rationalisation of subsidies, but implementation remains inconsistent. Revenue challenges stemming from lower crude oil production and volatile global oil prices continue to constrain the government's earning capacity.
The DMO will continue to release quarterly debt figures, with the next update expected to cover the position as of March 31, 2026. Stakeholders will watch closely to see whether the debt accumulation pace accelerates or moderates in the opening months of 2026, as this will signal the effectiveness of fiscal management measures implemented by the federal government.
