Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Debt Management Office has dropped another staggering figure on an already weary nation, confirming that Nigeria's total public debt climbed to N159.35 trillion as of March 31, 2026, representing a staggering increase of N9.96 trillion, or 6.67 per cent, from the N149.39 trillion recorded at the end of the first quarter of 2025. The latest public debt portfolio report, released on August 7, 2026, paints a grim picture of a country hurtling deeper into a fiscal abyss, with debt service obligations now consuming more than half of federal revenue and leaving little room for the infrastructure and development that Nigerians desperately need.
On a quarter-on-quarter basis, the debt stock increased marginally by about N75.51 billion, or 0.05 per cent, from N159.28 trillion recorded at the end of December 2025. But this apparent stability in naira terms masks a more troubling reality. In dollar terms, Nigeria's total public debt rose by 18.22 per cent over the same one-year period, climbing from $97.24 billion in March 2025 to $114.95 billion in March 2026. The divergence between naira and dollar movements reflects changes in the exchange rate used by the DMO to translate foreign debt into local currency. The agency applied an official Central Bank of Nigeria rate of N1,386.2156 per dollar for the March 2026 figures, compared with N1,435.2571 per dollar at the end of December 2025, representing an appreciation of about 3.42 per cent.
The composition of the debt reveals a significant shift towards domestic borrowing. Domestic debt now stands at N87.40 trillion, accounting for 54.85 per cent of the total debt stock, while external debt stands at N71.95 trillion, representing 45.15 per cent. Domestic debt increased by N8.64 trillion, or 11 per cent, from N78.76 trillion in March 2025, while external debt rose by N1.32 trillion, or 1.9 per cent, from N70.63 trillion recorded in the same period. Compared with December 2025, domestic debt rose by N2.55 trillion, or 3 per cent, from N84.85 trillion, while external debt declined by N2.48 trillion, or 3.3 per cent, from N74.43 trillion. The decline in the naira valuation of external debt was almost entirely offset by increased domestic borrowing, highlighting the government's growing reliance on the local market to finance its fiscal needs.
The federal government accounted for N82.88 trillion of the domestic debt, while states and the Federal Capital Territory accounted for N4.52 trillion. Within federal domestic debt, FGN bonds remained the dominant instrument at N63.45 trillion, representing 76.56 per cent of the total, while Nigerian Treasury Bills accounted for N16.57 trillion, or 19.99 per cent. FGN Sukuk stood at N1.19 trillion, while promissory notes totalled N1.39 trillion. The concentration of domestic borrowing in long-dated bonds and shorter-term Treasury Bills underscores the government's ongoing reliance on the local market, but critics warn that this approach is cannibalising the private sector. "Every naira the government borrows domestically is a naira that Nigerian banks cannot lend to manufacturers or small businesses," one analyst observed.
The external debt portfolio reveals that multilateral creditors hold the largest share at $23.86 billion, or 45.96 per cent of total external debt, with the World Bank Group accounting for a significant portion. Commercial debt, largely reflecting Eurobond obligations, stood at $18.55 billion, or 35.73 per cent, while bilateral debt accounted for $6.59 billion, or 12.69 per cent. Major bilateral exposures include $4.95 billion owed to China Exim Bank and $507.52 million to China Development Bank.
The political backlash was swift. The African Democratic Congress accused the federal government of pursuing an unsustainable borrowing policy, warning that the country's rising debt profile could push Nigeria into bankruptcy if the trend continues. ADC National Publicity Secretary Bolaji Abdullahi said the federal government's increasing debt profile and current level of debt servicing had severely constrained the country's finances and its ability to execute development projects.
The debt trajectory since President Bola Tinubu took office is particularly alarming. Total public debt stood at N87.38 trillion on June 30, 2023, shortly after the current administration assumed power. In just under three years, the figure has nearly doubled. The government's borrowing appetite shows no signs of abating. On March 31, 2026, President Tinubu sent a letter to the National Assembly requesting permission to borrow an additional $6 billion from abroad. The request, wrapped in the language of fiscal responsibility and infrastructure priorities, was approved by lawmakers on the same day. Critics argue that much of the borrowed money is not reaching the people. In the first nine months of 2025, the Tinubu government borrowed N11.89 trillion, exceeding its planned borrowing target of N10.34 trillion by approximately N1.54 trillion. Of that staggering sum, only N3.10 trillion was allocated to capital expenditure, a mere 17.66 per cent of the N17.58 trillion earmarked for capital projects.
The International Monetary Fund has projected that Nigeria will spend 53.7 per cent of its federal revenue on debt servicing in 2026, up from 40.8 per cent in 2024. President Tinubu himself disclosed that Nigeria will spend approximately $11.6 billion servicing debt in 2026, nearly half of the country's projected revenue for the entire year. With Nigeria's public debt projected to reach a new high of N188 trillion by the end of 2026, translating to N652,000 per Nigerian citizen, the question is no longer whether the country can afford to stop borrowing. It is whether the country can afford to continue on this path. For now, the answer remains uncertain, and the burden grows heavier with each passing day.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters News | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments