Nigeria spends N10.81trn on debt service in 9 months
2026-02-21 - 03:46
•As public debt stock rises to N153trn By Elizabeth Adegbesan Nigeria spent N10.81 trillion servicing outstanding debt obligations in the first nine months of 2025 (9M’25), according to figures released by the Debt Management Office (DMO). The DMO disclosed yesterday that the amount comprised external debt service payments of $3.34 billion (N4.49 trillion, converted at the Nigerian Foreign Exchange rate of N1,346 per dollar) and domestic debt service payments of N6.32 trillion during the period. The agency further revealed that Nigeria’s public debt profile rose to N153.3 trillion ($103.93 billion) as of September 30, 2025, representing a 0.59 percent quarter-on-quarter increase from N152.4 trillion ($99.66 billion) in June 2025. According to the DMO, the debt stock consists of domestic debt of $55.47 billion (¦ 81.81 trillion) and external debt of $48.46 billion (N71.47 trillion), covering both the Federal Government and subnational entities—the 36 states and the Federal Capital Territory (FCT). The Federal Government accounted for the bulk of domestic debt, which rose to N77.81 trillion in Q3 2025 from N76.58 trillion in Q2 2025. Similarly, the domestic debt stock owed by states and the FCT increased slightly to N4 trillion in September from N3.96 trillion in June 2025. The steady growth in Nigeria’s debt profile underscores the Federal Government’s reliance on borrowing to finance critical infrastructure amidst persistent budget deficits. In January 2025, the DMO dismissed a report claiming that Nigeria’s public debt rose from N21 trillion to N142 trillion under President Bola Tinubu. The Office clarified that when Tinubu assumed office, the country’s debt stood at N87 trillion, not N21 trillion as alleged. Available DMO data, however, shows that Nigeria’s public debt has been on a rapid upward trajectory since 2023, driven largely by naira depreciation and fresh borrowing. Debt surged in the first half of 2023 following the securitization of ¦ 22.7 trillion in Ways and Means advances and naira devaluation, rising to N87.38 trillion by the end of Q2 2023. The trend continued through 2024 and 2025, with total debt reaching N121.67 trillion by Q1 2024 and crossing N152 trillion by June 2025.