Nigeria’s Rising Public Debt Hits N152.39 Trillion in Q2 2025 — NBS Report
Nigeria’s total public debt rose to N152.39 trillion in the second quarter of 2025, increasing from N149.38 trillion reported in the first quarter, according to new figures released by the National Bureau of Statistics (NBS) on Monday. The 2.01% quarter-on-quarter rise underscores the country’s expanding domestic and external borrowing commitments.
The NBS data reveals that external debt reached N71.84 trillion (46.98 billion dollars), while domestic debt grew to N80.55 trillion (52.67 billion dollars) in Q2 2025. External obligations accounted for 47.14% of total public debt, with domestic borrowings making up 52.86%.
State-by-state debt profile
Lagos State maintained its position as Nigeria’s most indebted subnational entity, recording N1.04 trillion in domestic debt in Q2 2025. Rivers State followed with N364.39 billion. Jigawa State posted the lowest domestic debt at N852.49 million, while Ondo State recorded N10.64 billion.
In terms of external loans, Lagos also topped the list with 1.04 billion dollars, while Kaduna State ranked second with 658.70 million dollars. The Federal Capital Territory (FCT) had the least external debt at 19.26 million dollars.
Federal Government borrowing
The Debt Management Office (DMO) reported that the Federal Government raised N6.17 trillion from the domestic market in the first half of 2025. Funding came primarily through FGN Bonds, Nigerian Treasury Bills, and Promissory Notes—major instruments in Nigeria’s domestic debt framework.
Of the total borrowing, N4.48 trillion was sourced in Q1 2025, while N1.70 trillion was secured in Q2, marking a 2.26% increase from the previous quarter.
External debt servicing
Nairametrics earlier disclosed that Nigeria’s external debt service costs climbed to $932.1 million in Q2 2025. Of this, multilateral lenders received $629.38 million, representing almost 68% of total payments. Bilateral creditors—including JICA, China Development Bank, and AFD—were paid $41.18 million, while commercial creditors such as Eurobond holders and Unicredit SPA received $261.55 million.
Expert concerns
Financial experts warn that Nigeria’s rising public debt is approaching levels that could threaten long-term economic stability. Speaking at the CMAN Q4 2025 Virtual Symposium, analysts highlighted that the country’s debt outlook remains fragile due to weak government revenues, surging debt service obligations, and underlying structural challenges. Although the debt-to-GDP ratio remains within global norms, they caution that Nigeria’s rising public debt could become unsustainable without significant fiscal reforms.
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