Nigeria’s Public Debt Hits N159.35tn as Domestic Borrowing Surges — DMO

Nigeria’s Public Debt Hits N159.35tn as Domestic Borrowing Surges — DMO

Nigeria’s public debt reached N159.35tn in March 2026, with domestic borrowing rising sharply. See the latest DMO figures and key debt breakdown.

Nigeria’s total public debt stock climbed to N159.35tn at the end of March 2026, representing an increase of almost N10tn compared with the same period last year, according to the latest figures from the Debt Management Office (DMO).

The latest debt figures show a growing reliance on domestic borrowing, even as movements in the naira exchange rate affected the local-currency value of Nigeria’s foreign debt.

Data analysed from the DMO revealed that Nigeria’s total public debt increased by N9.96tn, or 6.67 per cent, from N149.39tn in March 2025 to N159.35tn in March 2026.

In dollar terms, the increase was more pronounced, with the total debt stock rising by about $17.71bn, or 18.22 per cent, from approximately $97.24bn to $114.95bn over the 12-month period.

The figures provide a fresh picture of Nigeria’s borrowing position as the Federal Government continues to finance its budget, infrastructure programmes and other public expenditures amid significant fiscal pressures.

Nigeria’s Debt Rises Marginally Between December and March

On a quarterly basis, however, the increase in Nigeria’s total public debt was relatively small.

The country’s debt stock moved from N159.28tn in December 2025 to N159.35tn in March 2026, representing an increase of approximately N75.51bn, or 0.05 per cent.

The dollar value recorded a larger movement during the same period, rising from $110.97bn to $114.95bn, an increase of approximately $3.98bn, or 3.59 per cent.

The difference between the naira and dollar movements was partly linked to the exchange rate used by the DMO to convert Nigeria’s foreign-denominated debt into naira.

For its March 2026 debt calculations, the DMO used an official Central Bank of Nigeria exchange rate of approximately N1,386.22 to the dollar, compared with N1,435.26/$ used at the end of December 2025.

The stronger naira exchange rate used for the March calculation reduced the naira value of Nigeria’s external debt, even though the underlying dollar-denominated debt increased slightly.

External Debt Falls in Naira Terms

Nigeria’s external debt stood at approximately $51.90bn in March 2026, compared with $51.86bn at the end of December 2025.

That represents a relatively modest increase of about $48.05m, or 0.09 per cent, over the three-month period.

However, when converted into naira, the external debt stock declined.

The naira equivalent of external debt fell from approximately N74.43tn in December 2025 to N71.95tn in March 2026, a reduction of about N2.48tn, or 3.33 per cent.

The movement illustrates how exchange-rate changes can significantly influence the reported naira value of Nigeria’s foreign obligations.

Despite the decline in the naira valuation of external debt, the dollar amount remained relatively stable during the quarter.

Domestic Debt Becomes More Dominant

While the naira value of external debt declined, domestic borrowing increased significantly.

Nigeria’s domestic debt rose from N84.85tn in December 2025 to N87.40tn in March 2026, representing an increase of approximately N2.55tn, or 3.01 per cent, in just three months.

As a result, domestic obligations accounted for 54.85 per cent of Nigeria’s total public debt at the end of March.

This was higher than the 53.27 per cent recorded in December 2025.

Conversely, external debt's share declined from 46.73 per cent to 45.15 per cent during the same period.

The shift highlights the increasing importance of domestic borrowing in Nigeria’s overall debt portfolio.

Domestic Debt Rises Nearly 11% in One Year

The year-on-year figures are even more significant.

Domestic debt increased from N78.76tn in March 2025 to N87.40tn in March 2026, representing an increase of N8.64tn, or 10.98 per cent.

Its share of total public debt consequently increased from 52.72 per cent to 54.85 per cent.

External debt, meanwhile, increased by only about N1.32tn, or 1.87 per cent, in naira terms over the same period, rising from N70.63tn to N71.95tn.

The difference reinforces the growing role of domestic borrowing in financing government activities.

Federal Government Remains the Largest Domestic Borrower

The Federal Government continued to account for the overwhelming majority of Nigeria’s domestic debt.

FGN domestic debt increased from N80.49tn in December 2025 to N82.88tn in March 2026, representing a quarterly increase of approximately N2.39tn, or 2.97 per cent.

Compared with the N74.89tn recorded in March 2025, the Federal Government's domestic debt increased by approximately N7.99tn, or 10.67 per cent, within one year.

The FGN domestic debt stock alone represented approximately 52.01 per cent of Nigeria’s entire public debt at the end of March.

That compared with 50.53 per cent in December 2025 and 50.13 per cent in March 2025.

States and FCT Debt Also Increase

Nigeria’s 36 states and the Federal Capital Territory also recorded an increase in domestic debt.

Their combined domestic debt rose from approximately N4.36tn in December 2025 to N4.52tn in March 2026.

That represents an increase of about N163.25bn, or 3.74 per cent, during the quarter.

On a year-on-year basis, states and the FCT saw their domestic debt rise from N3.87tn in March 2025 to N4.52tn in March 2026.

This represents an increase of approximately N654.58bn, or 16.92 per cent.

The figures indicate that borrowing pressures are not limited to the Federal Government, with subnational governments also carrying higher domestic obligations.

Treasury Bills Drive Increase in FGN Domestic Debt

One of the most notable developments in the latest figures was the sharp increase in outstanding Nigerian Treasury Bills.

Treasury Bills rose from N13.85tn in December 2025 to N16.57tn in March 2026.

That represents an increase of approximately N2.71tn, or 19.60 per cent, within just three months.

Compared with the N12.70tn recorded in March 2025, outstanding Treasury Bills increased by approximately N3.87tn, or 30.45 per cent, over one year.

Consequently, Treasury Bills accounted for approximately 19.99 per cent of FGN domestic debt in March 2026.

Their share stood at 17.21 per cent in December 2025 and 16.96 per cent in March 2025.

The increase suggests that short-term government securities played a major role in the expansion of Federal Government domestic borrowing during the period.

FGN Bonds Remain the Largest Domestic Debt Instrument

Despite the increase in Treasury Bills, FGN bonds remained the largest component of the Federal Government’s domestic debt.

Outstanding FGN bonds stood at approximately N63.45tn in March 2026, representing 76.56 per cent of FGN domestic debt.

The figure was slightly lower than the N63.63tn recorded in December 2025, declining by about N179.25bn or 0.28 per cent.

However, compared with March 2025, FGN bonds increased by approximately N3.66tn, or 6.12 per cent, from N59.80tn.

The March 2026 figure included conventional naira bonds, securitised Ways and Means advances and the domestic US dollar bond.

Conventional naira bonds accounted for approximately N39.46tn, while securitised Ways and Means advances stood at about N22.72tn.

The domestic US dollar bond was valued at approximately N1.27tn.

Other Domestic Debt Instruments Record Mixed Movements

Other government debt instruments recorded different movements during the first quarter.

FGN Sukuk remained at approximately N1.19tn, unchanged from December 2025. However, the amount was around N200bn higher than the N992.56bn recorded in March 2025.

Savings bonds increased from N104.32bn to N116.21bn between December and March, representing an increase of approximately 11.39 per cent.

On a year-on-year basis, savings bonds rose by more than 40 per cent from N82.61bn.

Green bonds remained unchanged at approximately N62.36bn during the quarter, but the figure was significantly higher than the N15bn recorded a year earlier.

Promissory notes moved in the opposite direction, falling from approximately N1.54tn in December to N1.39tn in March, a quarterly decline of about 10.28 per cent.

Despite the decline, promissory notes remained above their March 2025 level of N1.30tn.

Multilateral Loans Remain Nigeria’s Biggest External Debt Category

On the external borrowing side, multilateral loans remained Nigeria’s largest category of foreign debt.

Multilateral debt stood at approximately $23.86bn in March 2026, representing about 45.96 per cent of total external debt.

The figure was almost unchanged from the $23.85bn recorded in December 2025.

However, compared with March 2025, multilateral debt increased by approximately $1.42bn, or 6.35 per cent, from $22.43bn.

The International Development Association, the concessional lending arm of the World Bank, remained Nigeria’s largest individual external creditor.

Nigeria owed approximately $18.39bn to the IDA as of March 2026.

Although this was slightly below the $18.51bn recorded in December, it remained significantly above the $16.99bn recorded one year earlier.

China Remains a Major Bilateral Creditor

Bilateral debt stood at approximately $6.59bn in March 2026.

This was lower than the $6.72bn recorded in December 2025 but remained higher than the $6.03bn recorded in March 2025.

China remained Nigeria’s largest bilateral creditor, with approximately $507.52m owed to the China Development Bank, according to the figures.

The data highlights the continued importance of both multilateral and bilateral lenders in Nigeria’s external financing structure.

Nigeria’s 2026 Borrowing Plan Also Expands

The latest debt figures come against the backdrop of an expanded Federal Government borrowing plan for 2026.

The Federal Government reportedly increased its planned borrowing for the year to approximately N29.20tn following an expansion of the proposed budget size.

The revised borrowing plan represents an increase of approximately N11.31tn compared with the earlier N17.89tn borrowing projection contained in the 2026 Abridged Budget Call Circular.

The development means Nigeria’s debt position will continue to attract attention as policymakers attempt to balance government spending, infrastructure investment, debt servicing and fiscal sustainability.

What the Latest Debt Figures Mean for Nigeria

Nigeria’s latest debt figures show a clear shift toward domestic borrowing, with domestic obligations now making up more than half of the country’s total public debt.

Although the overall increase between December 2025 and March 2026 was relatively small in naira terms, the year-on-year rise remains substantial.

The increase in Treasury Bills is particularly noteworthy because it points to greater use of short-term domestic instruments in government financing.

At the same time, exchange-rate movements continue to have a major impact on the reported naira value of Nigeria’s external debt.

A stronger exchange rate can reduce the naira value of foreign-denominated obligations even when the underlying dollar debt remains unchanged or increases.

The central issue for policymakers will therefore be how to manage rising borrowing needs while maintaining debt sustainability and limiting the pressure of debt servicing on government revenues.

With the Federal Government planning significantly higher borrowing in 2026, Nigeria’s public debt position is likely to remain a major economic issue throughout the year.

FAQ...

What is Nigeria’s total public debt as of March 2026?

Nigeria’s total public debt stood at approximately N159.35tn at the end of March 2026, according to the latest DMO figures.

How much did Nigeria’s debt increase in one year?

The total debt stock increased by approximately N9.96tn, or 6.67 per cent, between March 2025 and March 2026.

Which part of Nigeria’s debt is larger, domestic or external?

Domestic debt was larger, accounting for approximately 54.85 per cent of total public debt in March 2026, compared with 45.15 per cent for external debt.

How much is Nigeria’s external debt?

Nigeria’s external debt stood at approximately $51.90bn in March 2026.

What was Nigeria’s domestic debt in March 2026?

Domestic debt stood at approximately N87.40tn at the end of March 2026.

What drove the increase in Federal Government domestic debt?

The increase was driven significantly by Treasury Bills, whose outstanding value rose by approximately 19.60 per cent between December 2025 and March 2026.

Who is Nigeria’s largest external creditor?

The International Development Association (IDA), part of the World Bank Group, remained Nigeria’s largest individual external creditor, with approximately $18.39bn outstanding in March 2026.

Nigeria public debt 2026, Nigeria debt stock, DMO latest debt figures, Nigeria debt N159.35tn, Nigeria domestic debt, Nigeria external debt, FGN debt 2026, Nigeria Treasury Bills, Nigeria borrowing plan 2026, Debt Management Office Nigeria, Nigeria economy 2026

Nigeria Economy, Public Debt, DMO, Federal Government, Domestic Debt, External Debt, Treasury Bills, FGN Bonds, Nigeria Economy 2026, Business News