Nigeria’s total public debt rose to N159.28 trillion in the fourth quarter of 2025, reflecting a continued upward trajectory in both federal and subnational borrowing, according to the National Bureau of Statistics (NBS).
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The figures were contained in the Nigerian Domestic and Foreign Debt Report released in Abuja on Monday, which showed that the country’s debt stock increased from N153.29 trillion recorded in the third quarter of 2025. This represented a 3.90 per cent quarter-on-quarter rise, underscoring persistent fiscal pressures across all levels of government.
A detailed breakdown revealed that external debt stood at N74.43 trillion, while domestic debt rose to N84.85 trillion within the period under review. Domestic borrowing accounted for 53.37 per cent of the total debt stock, while external obligations made up 46.73 per cent, indicating a slightly higher reliance on local credit markets.
At the subnational level, Lagos State remained the highest domestic debtor, with liabilities amounting to N1.22 trillion. Rivers State followed at N378.81 billion, highlighting the significant borrowing activity in Nigeria’s oil-rich and economically dominant regions. In contrast, Jigawa State recorded the lowest domestic debt profile at N1.60 billion, while Ondo State followed with N8.42 billion.
On external borrowing, Lagos State again topped the chart with $1.17 billion in foreign debt obligations. Kaduna State ranked second with $684.29 million, reflecting its comparatively higher exposure to international credit markets. At the lower end, the Federal Capital Territory reported external debt of $26.80 million, while Zamfara State recorded $41.93 million.
The report illustrated widening disparities in debt accumulation across Nigeria’s states, with economically active regions such as Lagos and Rivers consistently leading in both domestic and foreign borrowing.
Analysts often associate this trend with their larger infrastructural demands, population pressures, and revenue-generating capacity, which encourage higher levels of credit financing.
The continued rise in public debt has raised concerns about fiscal sustainability, particularly as governments at all levels rely heavily on borrowing to fund infrastructure, recurrent expenditure, and development projects.
The latest figures further emphasise the growing complexity of Nigeria’s debt profile and the increasing role of subnational governments in shaping overall national indebtedness.