The Debt Management Office (DMO) has disclosed that Nigeria’s overall domestic borrowing has climbed to N81.81 trillion, equivalent to $55.47 billion, while external obligations stand at N71.47 trillion, or $48.46 billion.
According to the debt agency, the federal government shoulders the lion’s share of local liabilities, pushing the figure to N77.81 trillion at the close of the third quarter of 2025, up from N76.58 trillion recorded in the preceding three-month period.
State governments together with the Federal Capital Territory saw their combined domestic borrowings edge higher from N3.96 trillion at the end of June to exactly N4 trillion by September 2025.
This steady climb in the country’s debt burden reflects the federal authorities’ urgent quest for fresh funds to bankroll vital infrastructure projects in the face of persistently wide budget shortfalls.
Nigeria’s proposed 2026 budget already carries a minimum deficit of N23.85 trillion, representing 4.28 per cent of the nation’s gross domestic product.
Public debates on fresh borrowing in the country frequently turn heated because of deep worries surrounding budget gaps and the fair sharing of national revenues.
Back in January 2025, the Debt Management Office swiftly rejected a widely circulated claim that Nigeria’s total public debt had skyrocketed from N21 trillion to N142 trillion during President Bola Tinubu’s administration.
The agency clarified that when President Tinubu took the oath of office, the nation’s entire debt stock stood at N87 trillion, not the N21 trillion figure wrongly stated in that report.
In the meantime, a May 17, 2025 assessment released by the National Orientation Agency revealed that both federal and state authorities had succeeded in lowering their debt loads, thanks largely to higher payouts received through the Federation Account Allocation Committee.
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