Nigeria’s total public debt climbed to N159.35 trillion at the end of March 2026, despite a stronger naira helping to reduce the local-currency value of the country’s external obligations.
The latest figures from the Debt Management Office (DMO) showed that the debt stock increased marginally by N75.51 billion, or 0.05 per cent, from N159.28 trillion recorded at the end of December 2025.
However, the picture is significantly different over 12 months, with public debt rising by N9.96 trillion, or 6.67 per cent, from N149.39 trillion in March 2025.
In dollar terms, total public debt stood at $114.95 billion in March, up from $110.97 billion three months earlier and $97.24 billion a year ago.
The relatively small quarterly increase in the naira value of the debt stock was largely due to the appreciation of the local currency, which reduced the naira valuation of external debt.
Domestic debt, meanwhile, accounted for virtually all the quarterly increase.
Domestic debt rose from N84.85 trillion in December 2025 to N87.40 trillion in March 2026, representing a N2.55 trillion, or 3.01 per cent, increase.
Federal Government domestic debt accounted for most of the rise, increasing from N80.49 trillion to N82.88 trillion during the period.
Treasury Bills recorded the sharpest expansion, with outstanding obligations rising from N13.85 trillion to N16.57 trillion, a 19.6 per cent increase in three months.
On a year-on-year basis, Treasury Bills rose by N3.87 trillion, or 30.45 per cent, from N12.70 trillion in March 2025.
By contrast, Federal Government bonds declined marginally by N179.25 billion during the quarter to N63.45 trillion, although the figure remained 6.12 per cent above its March 2025 level.
Debt owed by state governments and the Federal Capital Territory also increased, rising from N4.36 trillion in December to N4.52 trillion in March.
Naira appreciation cuts external debt value
Nigeria’s external debt remained broadly stable in dollar terms during the quarter, rising marginally from $51.86 billion to $51.90 billion.
But in naira terms, external debt fell by N2.48 trillion, from N74.43 trillion to N71.95 trillion.
The reduction was not driven by debt repayment but by exchange-rate gains following the appreciation of the naira.
The DMO valued external debt at an official exchange rate of N1,386.22/$ at the end of March, compared with N1,435.26/$ at the end of December.
Multilateral creditors accounted for the largest share of Nigeria’s external debt at $23.86 billion, followed by Eurobonds at $18.55 billion.
The International Development Association (IDA), with $18.39 billion outstanding, remained Nigeria’s largest multilateral creditor, while China Exim Bank was the country’s largest bilateral lender, with $4.95 billion.
Domestic borrowing drives debt growth
The debt figures indicate a continuing shift towards domestic borrowing.
Domestic debt accounted for 54.85 per cent of total public debt in March, up from 53.27 per cent three months earlier, while the share of external debt fell to 45.15 per cent.
Although the headline debt figure barely changed during the quarter, the underlying numbers show that the Federal Government borrowed an additional N2.55 trillion domestically.
The stronger naira effectively offset about N2.48 trillion of that increase through the lower naira valuation of external obligations.
Over the year to March 2026, however, the trend was more pronounced, with total public debt increasing by N9.96 trillion. Domestic debt accounted for about 87 per cent of the increase.
The development comes amid a higher 2026 borrowing plan, with the Federal Government’s projected borrowing requirement raised to N29.20 trillion from an earlier N17.89 trillion projection.
The figures underscore the growing importance of domestic borrowing in Nigeria’s fiscal financing and the need to monitor the associated debt-servicing burden, particularly as Treasury Bills and other short-term instruments expand.
