Nigeria’s domestic debt profile rose to N77.81 trillion as of September 2025, reflecting the Federal Government’s sustained reliance on the local debt market.
The latest figures, published by the Debt Management Office (DMO), show that federal bonds remain the dominant instrument in the country’s domestic debt structure, accounting for roughly 80 per cent of the total stock.
Bonds lead the portfolio
A breakdown of the data indicates that FGN Bonds stand at N61.9 trillion, representing about 80 per cent of total domestic debt. Of this amount, FGN Naira Bonds account for N60.64 trillion, while US dollar-denominated bonds make up N1.35 trillion.
Nigerian Treasury Bills total N12.68 trillion, accounting for 16.3 per cent of the domestic debt portfolio.
Other instruments include:
- FGN Savings Bonds – N97.46 billion (0.13%)
- FGN Green Bonds – N62.36 billion (0.08%)
- Promissory Notes – N1.69 trillion (2.17%), comprising N431.22 billion naira-denominated and N1.25 trillion foreign currency-denominated obligations.
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The September 2025 figure marks a sharp increase compared to N1.707 trillion recorded in the second quarter of 2025 (April–June), according to DMO disclosures.
Borrowing strategy in focus
The composition of the debt portfolio underscores the Federal Government’s strategy of combining long-term and short-term instruments to meet funding and liquidity needs.
Long-term instruments such as FGN Bonds provide more stable financing across extended maturities, while treasury bills are deployed to manage short-term liquidity pressures.
FGN Savings Bonds are designed to attract retail investors and small savers, broadening domestic participation in government securities. Green Bonds, though still marginal in size, are tied to environmentally sustainable projects, including renewable energy and climate resilience initiatives.
Sukuk instruments, structured in line with non-interest financing principles, are typically used to fund infrastructure projects, while Promissory Notes are issued to settle verified legacy obligations, including contractor arrears and other approved liabilities.
Although specialised instruments such as Green Bonds and Savings Bonds account for a relatively small share of the portfolio, their inclusion signals ongoing efforts to diversify funding sources and deepen the domestic debt market.
