Nigeria’s Public Debt Rises to N153.29 Trillion in Q3 2025, DMO Reports N900bn Quarterly Increase
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Reported by Afilawos Magana Sur, investigative Journalist at Sele Media Africa.
Nigeria’s total public debt climbed to N153.29 trillion as of September 30, 2025, reflecting a quarterly increase of N900 billion, according to the latest data released by the Debt Management Office (DMO). The new figure represents a 0.59 percent rise from the N152.39 trillion recorded at the end of June 2025, underscoring the continued upward trajectory of Africa’s largest economy’s debt profile amid fiscal pressures, currency volatility, and persistent revenue challenges. Steady growth in debt stock the DMO’s third-quarter report indicates that the incremental increase was driven by a combination of fresh domestic borrowing and adjustments in external debt obligations. While the quarterly rise appears modest in percentage terms, Nigeria’s cumulative debt burden has expanded significantly over the past decade, raising ongoing concerns about debt sustainability and fiscal resilience. Public debt comprises both domestic and external borrowings by the federal and sub-national governments. Analysts note that debt growth in recent years has been influenced by widening fiscal deficits, infrastructure financing needs, fuel subsidy reforms, and exchange rate realignments. Debt-to-Revenue pressures Persist although Nigeria’s debt-to-GDP ratio remains within thresholds considered moderate by international standards, the more pressing concern for policymakers is the debt-to-revenue ratio, which continues to strain government finances. A significant share of federal revenue is allocated to debt servicing, limiting fiscal space for capital investment and social spending. The DMO has consistently maintained that Nigeria’s borrowing strategy is anchored on sustainability principles, prioritizing concessional financing and extending maturities to reduce short-term refinancing risks.Broader Economic ContextThe Q3 2025 debt update comes amid ongoing economic reforms aimed at stabilizing macroeconomic fundamentals, improving revenue mobilization, and enhancing investor confidence. Fiscal authorities have emphasized tax reforms, public expenditure rationalization, and debt management strategies as critical to moderating long-term borrowing trends. International financial institutions and credit rating agencies continue to monitor Nigeria’s fiscal position closely, particularly in light of exchange rate adjustments that can inflate the naira value of external debt.Transparency and Market Signals the DMO’s regular publication of debt data reflects ongoing efforts to strengthen transparency in Nigeria’s public finance management framework. Market observers view consistent disclosure as essential to maintaining investor confidence in Nigeria’s sovereign instruments across domestic and international capital markets. Several reputable media outlets, including Reuters, Bloomberg, Premium Times, and The Guardian Nigeria, have also reported on Nigeria’s rising public debt and the implications for fiscal policy and economic stability. As Africa’s most populous nation continues to navigate complex economic reforms, the trajectory of public debt remains a critical barometer of fiscal discipline, revenue performance, and long-term development planning. Sources: Debt Management Office (DMO); Reuters; Bloomberg; Premium Times; The Guardian Nigeria.
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