ABUJA, July 1 (AGCNewsNet) – Nigeria’s total public debt surged to ₦149.38 trillion in the first quarter of 2025, marking a ₦4.72 trillion rise from the previous quarter, the Debt Management Office (DMO) announced on Monday. The increase was largely driven by persistent budget deficits and the depreciation of the naira, which significantly inflated the value of the country’s external borrowings.

The new debt figure represents a 3.3% increase from the ₦144.67 trillion recorded at the end of 2024. Of the total, ₦70.63 trillion ($45.9 billion) is owed externally, while domestic debt now stands at ₦78.75 trillion ($51.2 billion).

The sharp decline of the naira, which averaged ₦1,330.26 to the dollar during the first quarter, has amplified Nigeria’s debt burden in local currency terms despite only modest increases in the dollar value of its obligations. External debt rose by just $3.86 billion, but its naira equivalent jumped substantially due to foreign exchange volatility.

Financial analysts warn that Nigeria’s growing dependence on external financing—sourced from bilateral, multilateral, and commercial lenders like the World Bank and Eurobond holders—is straining the country’s fiscal space. A significant share of government revenue is now committed to servicing foreign debt, limiting investment in critical development projects.

Per capita debt has now exceeded ₦600,000, raising fresh concerns about sustainability. Since early 2024, Nigeria’s public debt has grown rapidly: from ₦121.67 trillion in Q1 2024 to ₦144.67 trillion by the end of the year, and now ₦149.38 trillion in Q1 2025.

The DMO has not disclosed the official exchange rate used for Q1 2025 calculations, but the data reflects ongoing challenges in managing currency risk amid macroeconomic headwinds.

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