Nigeria’s total public debt has climbed to N152.39 trillion in the second quarter of 2025, rising from N149.38 trillion recorded in the first quarter, according to fresh figures released on Monday by the National Bureau of Statistics (NBS). The 2.01% quarter-on-quarter increase highlights the continued expansion of the nation’s domestic and external debt burdens.
The NBS report shows that external debt stood at N71.84 trillion (46.98 billion dollars), while domestic debt reached N80.55 trillion (52.67 billion dollars) in Q2 2025. External debt accounted for 47.14% of the total public debt in naira terms, with domestic debt representing 52.86%.
Lagos State maintained its position as Nigeria’s most indebted subnational, posting a domestic debt of N1.04 trillion in Q2 2025, followed by Rivers State with N364.39 billion. Jigawa State recorded the lowest domestic debt at N852.49 million, while Ondo State followed with N10.64 billion.
For external debt, Lagos also led with 1.04 billion dollars, trailed by Kaduna State with 658.70 million dollars. The Federal Capital Territory (FCT) had the lowest external exposure at 19.26 million dollars.
The Debt Management Office (DMO) reported that the Federal Government borrowed N6.17 trillion from the domestic market within the first half of 2025. The borrowings were primarily secured through FGN Bonds, Nigerian Treasury Bills (NTBs), and Promissory Notes (P-Notes). The DMO noted that N4.48 trillion was raised in Q1, with an additional N1.70 trillion raised in Q2, marking a 2.26% increase from the previous quarter.
Debt servicing pressures have also intensified. Nigeria’s external debt service payments rose to 932.1 million dollars in Q2 2025. Of this amount, multilateral creditors received 629.38 million dollars, representing nearly 68% of the total. Bilateral creditors including JICA, the China Development Bank, and AFD received 41.18 million dollars, while commercial lenders such as Eurobond holders and Unicredit SPA were paid 261.55 million dollars.
Financial experts warn that Nigeria’s rising public debt is approaching an unsustainable threshold. Speaking at the Capital Market Academics of Nigeria (CMAN) Q4 2025 Virtual Symposium, analysts noted that weak revenue performance, escalating debt servicing costs, and persistent structural bottlenecks are pushing the country toward a fragile debt position, despite official claims that the debt-to-GDP ratio remains within global norms.
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Reporting by Agnes Ekebuike Editor, Naija247news in Lagos, Nigeria.
