From ₦87tn to ₦159.28tn: A Look into Nigeria’s Rapidly Expanding Debt Profile

Nigeria has hit a significant fiscal milestone as the total public debt stock climbed to ₦159.28 trillion as of December 31, 2025. This massive figure represents a near doubling of the nation’s debt within just two years, moving from roughly ₦87 trillion in mid-2023. According to the latest data from the Debt Management Office released this April 2026, the debt increased by ₦5.98 trillion in the final quarter of last year alone.

The surge is largely driven by a combination of persistent budget deficits and the sharp devaluation of the Naira, which has inflated the cost of servicing foreign loans. Domestic borrowing remains the dominant force, accounting for ₦84.85 trillion of the total, as the government increasingly relies on local investors to fund its operations. Meanwhile, external debt stands at ₦74.43 trillion, a figure heavily impacted by the official exchange rate used for conversion.

This mounting pressure has pushed debt servicing costs to critical levels, with projections suggesting that the government could spend over ₦15 trillion this year just to cover interest payments. While officials maintain that the borrowing is essential for infrastructure and long-term economic growth, the rapid pace of accumulation has sparked intense debate over the country’s long-term fiscal sustainability.