Nigeria’s total public debt climbed to ₦152.39 trillion in the second quarter of 2025, with Lagos once again emerging as the most indebted state, according to new figures released by National Bureau of Statistics, (NBS).
The latest debt profile, which captures both external and domestic obligations of the federal and state governments, reflects a 2.01 per cent increase from the ₦149.38 trillion recorded in the first quarter of the year. The rise underscores the country’s continued reliance on borrowing to stabilise public finances amid revenue constraints and mounting developmental needs.
According to NBS, Nigeria’s external debt stood at ₦71.84 trillion ($46.98 billion) in Q2 2025, while domestic debt amounted to ₦80.55 trillion ($52.67 billion). This puts external borrowings at 47.14 per cent of the total debt stock, with domestic debt making up 52.86%. Analysts say the current debt mix reflects the government’s attempt to manage repayment risks by balancing foreign exposure with local financing, though concerns persist about debt servicing consuming a significant share of national revenue.
A breakdown of state-level debt shows Lagos maintaining a wide lead with ₦1.04 trillion in domestic borrowings, more than double that of Rivers, which ranks second with ₦364.39 billion. At the lower end of the spectrum, Jigawa posted the least domestic debt, at ₦852.49 million, followed by Ondo, with ₦10.64 billion and Yobe, with $23.08 million in foreign obligations. The disparity highlights long-standing debates about fiscal capacity, revenue generation and borrowing patterns among Nigeria’s subnational governments.
Federal government accounted for the overwhelming majority of total public debt, holding ₦141.07 trillion as of Q2 2025. Of this figure, external loans make up ₦64.48 trillion, while domestic debt stands at ₦76.58 trillion. In contrast, all 36 states and the FCT collectively owe ₦11.32 trillion, including ₦7.35 trillion in foreign borrowings and ₦3.96 trillion in domestic loans.
The latest report comes amid growing calls for a more sustainable debt strategy, as Nigeria’s rising obligations continue to fuel concerns about fiscal pressure, reduced development spending and long-term economic vulnerability.
Nigeria’s rising public debt, now at ₦152.39 trillion, signals deeper structural pressures that could shape the country’s economic trajectory for years. With debt servicing already consuming a substantial share of government revenue, the continued increase risks squeezing funding for education, health, infrastructure and social welfare. The widening gap between highly indebted states like Lagos and low-borrowing states like Jigawa also raises questions about fiscal imbalance, economic productivity and the uneven capacity of states to finance development.
As external loans grow, Nigeria becomes more vulnerable to exchange-rate shocks, while heavier domestic borrowing may push up interest rates and crowd out private sector access to credit. Without decisive reforms to expand revenue, restructure borrowing and stimulate investment, the country may face tighter fiscal constraints, slower growth and rising public dissatisfaction over unmet development needs.
