Nigeria’s total public debt has risen to N159.28 trillion as of December 31, 2025, translating to an average debt burden of about N724,000 per citizen, according to the latest figures.
Data released by the Debt Management Office (DMO) indicates a steady increase in the country’s debt profile, largely driven by domestic borrowing to finance fiscal gaps.
The figures, however, exclude the recently approved N8.3 trillion external borrowing from the United Arab Emirates and UK Export Finance, suggesting that the total debt stock may rise further in subsequent reports.
With Nigeria’s population estimated at about 220 million, analysts say the current figures imply that every citizen bears a significant share of the national debt.
The debt stock increased from N153.29 trillion in September 2025 to N159.28 trillion in December 2025, representing a quarter-on-quarter rise of N5.98 trillion or 3.9 per cent. In dollar terms, the debt rose from $103.94 billion to $110.97 billion within the same period.
On a year-on-year basis, public debt grew by N14.61 trillion or 10.1 per cent, up from N144.67 trillion recorded in December 2024.
A breakdown of the figures shows that domestic debt remains the largest component, accounting for about 53.27 per cent of total public debt. It stood at N84.85 trillion in December 2025, up from N81.82 trillion in September 2025 and N74.38 trillion in December 2024.
The Federal Government holds the bulk of the domestic debt at N80.49 trillion, while states and the Federal Capital Territory account for N4.36 trillion.
External debt stood at N74.43 trillion, representing 46.73 per cent of total debt. This marks an increase from N71.48 trillion in September 2025 and N70.29 trillion in December 2024. In dollar terms, external debt rose to $51.86 billion, with the Federal Government accounting for N66.27 trillion and states and the FCT N8.16 trillion.
The continued expansion of Nigeria’s debt profile has raised concerns over fiscal sustainability, particularly due to rising debt servicing obligations and pressure on government revenue.
The Central Bank of Nigeria (CBN), in its 2026 macroeconomic outlook, projected a debt-to-GDP ratio of 34 per cent, with foreign reserves expected to rise to $51 billion.
The debt-to-GDP ratio compares a country’s total government debt to its Gross Domestic Product (GDP) and is used to assess its ability to repay debt.
Public debt as a percentage of GDP is projected to reach 34.68 per cent by the end of 2026, compared with 33.98 per cent recorded in June 2025, based on expected new borrowings.
Financial expert, Dr. Paul Alaje, warned that the rising debt stock implies that future generations of Nigerians may bear the burden of repayment.
He explained that increasing debt levels translate to higher debt servicing costs, which are funded through taxation and other public revenues.
Alaje noted that the challenge lies in Nigeria’s revenue generation capacity, stressing that when revenue falls short of expenditure needs, borrowing becomes inevitable.
“This is where the danger lies. When what we generate is not enough and we must spend, borrowing becomes the only option,” he said.
He added that inflation, which rose from 15.06 per cent to 15.38 per cent, has further weakened purchasing power, affecting citizens’ economic wellbeing.
On the implications of rising debt, Alaje said the burden would ultimately be borne by citizens through increased taxes and reduced public spending.
He also noted that government borrowing persists despite revenue improvements because revenue generation alone is insufficient to meet expenditure demands.
Analysts warn that unless Nigeria significantly improves its revenue base, continued borrowing could deepen fiscal vulnerabilities and shift the debt burden to future generations.
Culled from daily trust
