Nigeria’s Public Debt Hits N149.39 Trillion: A Look at the Country’s Biggest Creditors

As of March 31, 2025, Nigeria’s total public debt has increased to N149.39 trillion, reflecting a year-on-year rise of N27.72 trillion or 22.8% when compared to N121.67 trillion during the same period in 2024. This increase is primarily due to new borrowings and the effects of a depreciating exchange rate on external debt obligations.

Breakdown of Nigeria’s Debt

Nigeria’s debt consists of both domestic and foreign debts, which are owed by the federal and state governments. The domestic debt is recorded at N78.76 trillion, representing 52.7% of the total public debt, while the external debt amounts to N70.63 trillion, accounting for 47.3%. The domestic debt portfolio encompasses a variety of instruments, including FGN bonds, Nigerian Treasury Bills, FGN Sukuk, FGN Saving Bonds, FGN Green Bonds, and Promissory Notes. The largest portion is held in FGN bonds, totaling N59.8 trillion, followed by Nigerian Treasury Bills, which stand at N12.7 trillion. Nigeria’s external debt is composed of obligations to multilateral lenders, bilateral creditors, and commercial lenders. Multilateral lenders, such as the World Bank and African Development Bank, represent $22.5 billion, while bilateral creditors, predominantly China, account for $6 billion. Commercial lenders, mainly through Eurobonds, contribute $17.32 billion.

Concerns Over Debt Sustainability

Experts have raised alarms regarding the fiscal policies of President Bola Tinubu’s administration, noting a substantial rise in debt servicing from N8 trillion in 2024 to N16 trillion in 2025 as a concerning indicator. To reduce reliance on borrowing, Nigeria must enhance non-oil revenue, control recurrent expenditures, and pursue structural reforms. Nigeria’s escalating public debt presents considerable obstacles to the nation’s economic sustainability. Although the debt has facilitated infrastructure development and fulfilled governmental responsibilities, the growing strain of debt servicing generates apprehensions about the country’s capacity to manage its finances proficiently. To tackle these issues, Nigeria must emphasize fiscal responsibility, diversify its revenue sources, and enact reforms to foster economic growth and stability.