Nigeria’s total public debt stock climbed to ₦159.35 trillion by the end of March 2026, representing an increase of almost ₦10 trillion over the previous year, according to the latest figures released by the Debt Management Office (DMO).
The new data show that Nigeria’s public debt increased by ₦9.96 trillion, or 6.67 per cent, from ₦149.39 trillion recorded in March 2025 to ₦159.35 trillion in March 2026.
When measured in US dollars, however, the increase was considerably larger. The country’s total debt rose by about $17.71 billion, or 18.22 per cent, from approximately $97.24 billion to $114.95 billion over the same period.
The picture was different during the first quarter of 2026. Between December 2025 and March 2026, Nigeria’s total debt increased by only ₦75.51 billion, or 0.05 per cent, from ₦159.28 trillion to ₦159.35 trillion.
In dollar terms, however, the debt increased by approximately $3.98 billion, or 3.59 per cent, from $110.97 billion to $114.95 billion. The difference between the naira and dollar figures was partly influenced by the exchange rate used by the DMO to convert Nigeria’s foreign debt into naira. For its March 2026 calculation, the agency used an official Central Bank of Nigeria exchange rate of ₦1,386.2156 to the dollar, compared with ₦1,435.2571 per dollar at the end of December 2025.
The stronger naira exchange rate used in the March calculation reduced the local-currency value of Nigeria’s external debt, even though the dollar value remained relatively stable.
Nigeria’s external debt stood at approximately $51.90 billion in March 2026, up marginally from $51.86 billion in December. However, its naira equivalent dropped by about ₦2.48 trillion, from ₦74.43 trillion to ₦71.95 trillion.
At the same time, domestic borrowing increased significantly. Total domestic debt rose by ₦2.55 trillion, or 3.01 per cent, during the first quarter, moving from ₦84.85 trillion in December 2025 to ₦87.40 trillion in March 2026.
As a result, domestic debt accounted for 54.85 per cent of Nigeria’s total public debt by the end of March, compared with 53.27 per cent three months earlier. External debt’s share fell from 46.73 per cent to 45.15 per cent.
The shift becomes even clearer when the figures are compared year-on-year. Domestic debt increased by ₦8.64 trillion, or 10.98 per cent, from ₦78.76 trillion in March 2025 to ₦87.40 trillion in March 2026.
By comparison, external debt increased by only ₦1.32 trillion, or 1.87 per cent, in naira terms over the same period, rising from ₦70.63 trillion to ₦71.95 trillion.
The Federal Government remained the dominant borrower in Nigeria’s domestic debt market. Federal Government domestic debt increased from ₦80.49 trillion in December 2025 to ₦82.88 trillion in March 2026, representing a quarterly increase of ₦2.39 trillion, or 2.97 per cent.
Compared with the ₦74.89 trillion recorded in March 2025, the Federal Government’s domestic debt increased by ₦7.99 trillion, or 10.67 per cent, within one year.
The Federal Government’s domestic obligations alone accounted for 52.01 per cent of Nigeria’s entire public debt stock at the end of March, up from 50.53 per cent in December and 50.13 per cent a year earlier.
Debt owed domestically by Nigeria’s 36 states and the Federal Capital Territory also increased. Their combined domestic debt rose from ₦4.36 trillion in December to ₦4.52 trillion in March, an increase of ₦163.25 billion, or 3.74 per cent.
Compared with March 2025, state and FCT domestic debt increased by ₦654.58 billion, or 16.92 per cent, from ₦3.87 trillion. Treasury Bills were a major driver of the Federal Government’s increased domestic borrowing during the first quarter.
Outstanding Nigerian Treasury Bills rose by ₦2.71 trillion, or 19.60 per cent, from ₦13.85 trillion in December 2025 to ₦16.57 trillion in March 2026.
On a year-on-year basis, Treasury Bills increased by ₦3.87 trillion, or 30.45 per cent, from ₦12.70 trillion in March 2025. Their share of Federal Government domestic debt consequently increased to 19.99 per cent in March 2026, compared with 17.21 per cent in December and 16.96 per cent a year earlier.
Federal Government bonds remained the largest component of domestic debt, with an outstanding value of approximately ₦63.45 trillion in March. This represented 76.56 per cent of the Federal Government’s domestic obligations.
However, the figure was slightly lower than the ₦63.63 trillion recorded in December. On a year-on-year basis, FGN bonds increased by ₦3.66 trillion, or 6.12 per cent, from ₦59.80 trillion in March 2025.
The March figure included conventional naira bonds, securitised Ways and Means advances and a domestic US dollar bond.
Other debt instruments recorded mixed movements during the period. FGN Sukuk remained at ₦1.19 trillion during the quarter but was higher than the ₦992.56 billion recorded a year earlier. Savings bonds also increased, while green bonds remained unchanged during the quarter despite recording significant growth compared with March 2025.
Promissory notes, on the other hand, declined during the first quarter, falling by ₦158.78 billion to ₦1.39 trillion.
On the external debt side, multilateral loans remained Nigeria’s largest category of foreign borrowing, standing at approximately $23.86 billion, or 45.96 per cent of total external debt.
The International Development Association (IDA), the concessional lending arm of the World Bank, remained Nigeria’s largest individual external creditor, with approximately $18.39 billion outstanding in March.
Nigeria’s bilateral debt stood at about $6.59 billion, while China remained the country’s largest bilateral creditor, including obligations to the China Development Bank.
Eurobond obligations stood at approximately $18.55 billion, representing a modest increase compared with the level recorded a year earlier.
The latest debt figures come as the Federal Government plans to significantly increase its borrowing in 2026.
The government has reportedly raised its proposed borrowing plan for the year to ₦29.20 trillion, following an increase in the size of the proposed 2026 budget. The revised figure represents an increase of ₦11.31 trillion from the earlier ₦17.89 trillion borrowing projection contained in the 2026 Abridged Budget Call Circular.
The continued rise in domestic borrowing means Nigeria’s debt profile is becoming increasingly tilted toward local financing. While the stronger exchange rate reduced the naira value of external obligations in the first quarter, the growth in domestic borrowing continues to place pressure on the government’s overall debt position.
As the Federal Government moves ahead with its 2026 borrowing programme, the sustainability of public debt, the cost of servicing existing obligations and the balance between domestic and external financing are likely to remain major issues for Nigeria’s economy.
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