Nigeria’s total public debt rose to N159.28 trillion, equivalent to 110.97 billion dollars, as of December 2025, according to the latest data released by the Debt Management Office.

A breakdown of the figures shows that domestic debt accounted for N84.85 trillion, representing 59.11 billion dollars, while external debt stood at N74.43 trillion, equivalent to 51.86 billion dollars. This positions domestic borrowing as the larger component of the country’s debt profile, making up 53.27 per cent of the total, while external borrowing accounts for 46.73 per cent.

The Debt Management Office explained that Nigeria’s total debt stock comprises both external and domestic borrowings by the Federal Government, as well as obligations incurred by the 36 states and the Federal Capital Territory.

Further analysis of the data indicates that the Federal Government holds the bulk of the debt burden, with N80.49 trillion in domestic debt and N66.27 trillion in external debt. In contrast, the 36 states and the Federal Capital Territory collectively account for N4.36 trillion in domestic debt and N8.16 trillion in external debt.

According to April data from the International Monetary Fund, Nigeria’s debt-to-GDP ratio is projected to decline to 32.3 per cent in 2026 from 35.5 per cent recorded in 2025. Although this remains below the global benchmark of 60 per cent, analysts continue to express concerns about the country’s high debt servicing costs relative to its revenue base.

Nigeria’s external debt is structured across three main categories based on the nature of creditors. Multilateral loans make up the largest share at 23.19 billion dollars, accounting for 45 per cent of total external debt. These loans are typically concessional facilities provided by international financial institutions.

The World Bank remains Nigeria’s largest single external creditor, with exposure amounting to 18.3 billion dollars. The country is currently ranked as the third-largest debtor to the World Bank’s International Development Association. The African Development Bank also holds approximately 3.5 billion dollars in outstanding credit facilities to Nigeria.

Bilateral loans, which are credits extended by individual foreign governments, total 6.20 billion dollars and account for 12 per cent of the external debt. Within this category, the Exim Bank of China is the leading creditor, responsible for 4.91 billion dollars, representing over 80 per cent of Nigeria’s bilateral debt obligations.

On the domestic front, Nigeria’s debt is largely made up of securities issued by the Federal Government and held by local financial institutions, including banks, pension funds and other institutional investors. Federal Government of Nigeria bonds remain the dominant instrument, accounting for about 80 per cent of local debt. These now include securitised Ways and Means advances obtained from the Central Bank.

Other domestic debt instruments include Nigerian Treasury Bills, FGN Sukuk and Promissory Notes, all of which contribute to the overall composition of the country’s internal borrowing.