Nigeria’s external debt rose by 26.07% year-on-year in the first quarter of 2025, according to data released by the Debt Management Office (DMO) on Friday, June 27, 2025.

The report shows that external debt reached 70.63 trillion naira, equivalent to $45.97 billion, compared to $42.11 billion in the same period last year. While the report does not detail the causes, the increase is likely linked to new government loans and the continued depreciation of the naira.

In March 2025, the World Bank approved $1.08 billion in concessional financing to improve education, nutrition, and household resilience for vulnerable communities.

Domestic debt also rose from 65.65 trillion naira in the first quarter of 2024 to 78.76 trillion naira by the end of March 2025.

The announcement comes as Nigeria’s Parliament considers a new external borrowing plan worth $24.14 billion, proposed in late May by President Bola Tinubu to fund key infrastructure projects. The plan has drawn criticism from opposition parties and civil society groups, who fear it could worsen the country’s debt burden.

The rising debt reflects Nigeria’s ongoing budgetary pressures and continued reliance on both domestic and foreign borrowing to cover public spending. Former Vice President Atiku Abubakar recently stated that public debt has grown by 65.6% since President Tinubu took office in 2023.

It is worth noting that Nigeria completed repayment of a $3.4 billion loan from the International Monetary Fund (IMF) in April. That loan was taken in 2020 to cushion the economic impact of the COVID-19 pandemic.

In total, Nigeria’s public debt reached 149.39 trillion naira in the first quarter of 2025, marking a 22.78% increase compared to the same period last year.