Amanze Chinonye
Nigeria’s public debt stock rose to N152.39 trillion (US$ 99.65 billion) in the second quarter of 2025, up from N149.38 trillion (US$ 97.23 billion) in the first quarter, the National Bureau of Statistics (NBS) disclosed in its Nigerian Domestic and Foreign Debt Report for Q2 2025, released on Monday.
The increase represents a 2.01 per cent growth on a quarter-on-quarter basis, reflecting the combined effects of domestic and external borrowing by the federal and subnational governments.
According to the NBS, external debt stood at N71.84 trillion (≈ US$ 46.98 billion) in Q2 2025, while domestic debt was N80.55 trillion (≈ US$ 52.67 billion). In terms of share of total public debt, external debt accounted for 47.14 per cent, with domestic debt representing 52.86 per cent.
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At the subnational level, Lagos State recorded the highest domestic debt at N1.04 trillion, followed by Rivers State with N364.39 billion.
Jigawa State had the lowest domestic debt at N852.49 million, while Ondo State followed with N10.64 billion. On external debt, Lagos again led with US$ 1.04 billion, followed by Kaduna State with US$ 658.70 million.
The Federal Capital Territory (FCT) recorded the lowest external debt at US$ 19.26 million, while Yobe State had US$ 23.08 million.
The rise in Nigeria’s public debt, the highest recorded in Naira terms, underscores the country’s growing reliance on borrowing to fund fiscal obligations.
Analysts note that while the increase in domestic debt may mitigate foreign-exchange exposure, external obligations remain significant, particularly given global currency fluctuations.
Observers also caution that heavy debt burdens at the federal and state levels could constrain fiscal space, potentially affecting funding for public services and development projects, and stress the need for prudent debt management and transparent use of borrowed funds.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
