Nigeria total public debt rose by N900 billion to N153.29 trillion in the third quarter of 2025, according to figures released by the Debt Management Office DMO. The latest data highlights the continued fiscal pressures facing the federal and state governments amid revenue constraints and rising expenditure commitments.
The DMO attributed the increase to new domestic borrowings and adjustments in external debt obligations. Analysts note that exchange rate fluctuations have also influenced the naira value of foreign denominated loans.
Fiscal experts warn that while borrowing remains a legitimate financing tool, sustainability depends on revenue generation and productive deployment of funds. Nigeria debt to revenue ratio has remained a subject of concern, with significant portions of government income allocated to debt servicing.
Government officials maintain that borrowings are targeted at infrastructure development, social investment programmes, and capital projects aimed at stimulating growth. They argue that improved oil production and tax reforms will enhance repayment capacity over time.
Economists stress the importance of fiscal discipline, diversification of revenue sources, and efficient public expenditure management. They caution that without structural reforms, rising debt could constrain future policy flexibility.
As Nigeria navigates economic adjustments, the trajectory of public debt will remain closely monitored by investors, rating agencies, and multilateral institutions assessing long term fiscal stability.
