[ASHENEWS] June 28, 2025 – Nigeria’s total public debt has continued its upward trajectory, reaching a staggering ₦149.39 trillion (approximately $97.24 billion) as of March 31, 2025, according to fresh data released by the Debt Management Office (DMO).
This figure marks a significant increase from ₦144.67 trillion recorded at the end of 2024, underscoring the country’s growing fiscal pressures and reliance on borrowing.
Breakdown of debt figures
As of December 31, 2024:
- External Debt stood at ₦70.29 trillion
- Domestic Debt was ₦74.38 trillion
- Total Public Debt: ₦144.67 trillion
By March 31, 2025:
- External Debt increased slightly to ₦70.63 trillion
- Domestic Debt surged to ₦78.76 trillion
- Total Public Debt: ₦149.39 trillion
The rise of about ₦4.72 trillion in just one quarter is largely attributed to increased domestic borrowing, which grew by over ₦4.38 trillion, while external debt saw a marginal increase of ₦340 billion.
Implications for the economy
The growing debt profile has sparked concerns among economists and financial analysts over Nigeria’s fiscal sustainability. With domestic borrowing outpacing foreign loans, analysts warn of rising debt servicing costs, crowding out of private sector credit, and inflationary pressures.
While the federal government has defended its borrowing strategy as necessary to fund infrastructure and stimulate growth, critics argue that the returns on many of these borrowings remain unclear, especially in the absence of significant improvements in revenue generation and economic productivity.
A call for fiscal prudence
Fiscal experts are calling on the Nigerian government to adopt a more aggressive approach to revenue mobilization through tax reforms, plugging leakages, and expanding the non-oil sector. They also urge a comprehensive audit of public expenditures to ensure that borrowed funds are efficiently and transparently utilized.
The DMO’s next quarterly update will be closely watched by stakeholders, as it will provide further insight into Nigeria’s fiscal direction amid domestic and global economic challenges.
Source: Debt Management Office (DMO)
