Stronger naira masks rise in Nigeria’s public debt to N159.35 trillion

As of March 31, 2026, Nigeria's total public debt reached N159.35 trillion, a modest increase from the previous quarter but a substantial rise compared to the previous year. The Federal Government continued to rely on domestic borrowing, despite the stronger naira reducing the local currency value of external debt. According to the Debt Management Office (DMO), total public debt ended the first quarter at N159.35 trillion, up from N159.28 trillion at the end of December 2025.

This represents a 6.67% year-on-year growth, with the domestic debt component accounting for 54.85% of the total debt. The dollar value of Nigeria's debt rose by $3.98 billion, or 3.59%, reflecting additional borrowing that was partially offset by the naira's appreciation. Domestic borrowing accounted for virtually all the increase in Nigeria's debt stock during the first quarter, with Nigerian Treasury Bills seeing the sharpest increase.

External debt remained largely stable in dollar terms but declined in naira terms due to exchange rate movements, with multilateral lenders, particularly the International Development Association, being the largest external creditors.