Nigeria’s Public Debt Climbs to ₦166.79tn as Domestic Borrowing Remains Dominant

Nigeria's public debt stock rose to ₦166.79 trillion at the end of June 2026, adding ₦7.44 trillion to the country's obligations within three months.

The latest figure, released by the Debt Management Office, compares with ₦159.35 trillion at the end of March and shows that borrowing remained on an upward path during the second quarter.

Domestic Debt Carries the Larger Share

Domestic borrowing accounted for ₦91.59 trillion , representing 54.91% of the total debt stock.

External debt stood at the equivalent of ₦75.20 trillion , while the entire debt portfolio was valued at about $120.93 billion using the exchange rate applied by the DMO at June 30.

The figures underline how heavily Nigeria's public finances continue to depend on the domestic market for funding.

Federal Government Remains the Main Borrower

The Federal Government accounted for approximately ₦152.77 trillion of the total public debt, leaving about ₦14.01 trillion for the states and Federal Capital Territory combined.

On the domestic side, the Federal Government's debt stood at ₦87 trillion , while states and the FCT accounted for ₦4.59 trillion.

That concentration means changes in federal borrowing have a much greater influence on the country's overall debt position than borrowing by subnational governments.

Bonds Make Up Most of Federal Domestic Debt

FGN bonds remained the largest component of federal domestic obligations, with ₦64.84 trillion outstanding, equivalent to 74.53% of Federal Government domestic debt.

Treasury Bills accounted for another ₦19.48 trillion , while securitised Ways and Means advances stood at ₦22.11 trillion . The portfolio also included Sukuk, savings bonds, green bonds and promissory notes.

The composition matters because different instruments carry different maturities, interest costs and refinancing requirements.

The Increase Needs to Be Read Alongside Debt Service

A larger debt stock does not automatically tell the full story about fiscal pressure.

The cost of servicing that debt is equally important because government revenue must cover interest and principal obligations while also financing public services and investment.

Nigeria's domestic debt-service payments actually fell to ₦2.14 trillion in the second quarter of 2026 , down from ₦3.14 trillion in the first quarter, according to recently released figures.

That quarterly decline does not erase the longer-term debt challenge, but it shows why debt analysis needs to consider both the size of outstanding obligations and the cost and timing of servicing them.

The Debt Stock Has Changed Significantly

The scale of the increase becomes clearer over a longer period.

Nigeria's total public debt stood at ₦87.38 trillion in June 2023 , according to DMO data. By June 2026, it had reached ₦166.79 trillion.

That does not mean the entire increase represents new cash borrowing alone. Changes in exchange rates can affect the naira value of foreign-currency obligations, while debt restructuring and the composition of instruments can also influence the reported stock.

What Matters Next

The immediate question for the economy is how effectively the government can convert additional borrowing into revenue-generating infrastructure, productive capacity and stronger fiscal performance.

With domestic debt already making up more than half of the total, sustained borrowing also keeps the government closely connected to conditions in Nigeria's financial markets.

For businesses and investors, the direction of public borrowing will therefore remain important because it can influence interest rates, government securities yields, private-sector access to credit and the broader cost of capital.

Nigeria's debt stock has reached another major milestone. The more consequential issue is whether the additional borrowing can produce enough economic returns and fiscal capacity to make the rising obligations easier to manage.