The Debt Management Office (DMO) disclosed that Nigeria’s public debt stock added N900 billion to N153.29 trillion as of September 30, 2025.
The increase, led by Delta and Jigawa, from sub-national end, amounted to a 0.59 per cent rise from the N152.39 trillion reported at the end of June.
The country’s debt profile is projected to rise to over N177.14 trillion by the end of 2026, considering the 2026 considering estimated fiscal deficit of N23.85 trillion.
The report released by the DMO at the weekend shows that the domestic debt of Jigawa and Delta states grew by 87.68 and 20.77 per cent, respectively. In the same period, Kogi state recorded the highest debt reduction at 31.31 per cent.
The total debt profile includes both domestic and external liabilities incurred by the Federal Government, 36 states and the Federal Capital Territory (FCT).
As of the third quarter of 2025, domestic debt stood at N81.81 trillion ($55.47 billion), while external debt was N71.47 trillion ($48.46 billion). The office used an exchange rate of N1474.85/$.
The Federal Government accounted for the majority of domestic debt. Its share rose to N77.81 trillion from N76.58 trillion in Q2.
State governments and the FCT also saw their domestic debt marginally increase from N3.96 trillion at the close of H1 2025 to N4 trillion as of the end of September.
Analysis of the report shows that Lagos state has the highest domestic debt; however, its debt only increased marginally by 0.43 per cent from N1.041 trillion in the second quarter of 2025 to N1.045 trillion in the third quarter.
Rivers state, which ranks second with a total domestic debt of N381.21 billion, increased its debt profile by 4.61 per cent from N364.39 billion in the second quarter.
Delta ranks as the third most indebted state in Nigeria as of the third quarter 2025; its debt increased by 20.77 per cent from N204.66 billion in the second quarter.
Jigawa state maintains its position as the least indebted. It, however, recorded the fastest growth between the second quarter and the third quarter as its stock increased by 87.68 per cent – from N852.49 million to N1.6 billion.
On the other hand, Kogi state reduced its debt by 31.31 per cent, from N18.79 billion in the second quarter to N14.311 billion in the third quarter.
Ondo State also reduced its debt by 10.47 per cent during the period from N10.64 billion in the second quarter to N9.53 billion in the third quarter.
Nigeria’s rising debt profile has been a source of concern. With the latest data, the debt-to-GDP ratio is 41 per cent.
Despite revenue growth, following recent reform measures, the government’s expanded spending continues to expand, necessitating more borrowing, especially from the domestic bonds market through the monthly FGN savings bonds.
The borrowing, some experts have argued, is negatively impacting the domestic market as it is crowding out the private sector.
There is also a warning of potential long-term consequences, including an unsustainable national debt burden.
