Nigeria’s Public Debt Jumps by ₦14.6tn in One Year as Domestic Borrowing Hits ₦84bn; World Bank Exposure Peaks at $18.3bn Amid Naira Fluctuations

Nigeria’s fiscal landscape is facing renewed scrutiny as the latest figures from the Debt Management Office (DMO) reveal that the nation’s total public debt stock has climbed to a staggering ₦159.28 trillion ($110.97 billion) at the close of 2025. The data, released in mid-April 2026, underscores a persistent reliance on both local and international credit markets to fund the federal budget and critical infrastructure projects under the “Renewed Hope” agenda.

The quarter-on-quarter increase of ₦5.98 trillion between September and December 2025 highlights the administration’s aggressive drive to stabilize the economy through capital injection. However, the year-on-year growth is even more pronounced; since December 2024, Nigeria’s total debt has expanded by over 10%, adding ₦14.61 trillion to the national ledger.

This surge is partly attributed to the securitization of “Ways and Means” advances and the valuation effects of the naira’s official exchange rate, which was pegged at ₦1,435.25/$ for the Q4 calculation. Domestic debt continues to be the “engine” of the nation’s borrowing strategy, accounting for over 53% of the total stock. Of the ₦84.85 trillion in local debt, the Federal Government is responsible for ₦80.49 trillion, primarily through FGN Bonds and Treasury Bills held by local banks and institutional investors.

On the external front, the World Bank maintains its position as the country’s primary lender, with Nigeria now ranked as the third-largest debtor to the bank’s International Development Association (IDA). While the sheer volume of debt has raised alarms among economic analysts, the Presidency remains focused on the “debt-to-GDP” metric, which is currently projected by the IMF to trend downward to 32.3% in the 2027 transition cycle.

Government officials argue that the borrowing is a “mechanical necessity” to bridge the infrastructure gap, pointing to recent achievements like the 6,000MW power peak as evidence of the debt’s utility. However, the Trade Union Congress (TUC) and other labor groups have warned that the cost of servicing this debt is increasingly competing with essential welfare spending.

As President Tinubu recently approached the National Assembly for an additional $6 billion in external loans to fund the 2026 supplementary budget, the debate in the “political trenches” has shifted from the size of the debt to the efficiency of its application. For the average Nigerian, the focus remains on whether these trillions will translate into lower inflation and improved living standards before the next electoral cycle.