Nigeria’s total external debt stock has climbed from $42.49 billion in December 2023 to $51.86 billion by December 2025, marking a significant $9.36 billion increase over two years. This surge reflects the Federal Government's intensified foreign borrowing strategy under President Bola Tinubu’s administration, according to the latest data from the Debt Management Office (DMO).

The 22% increase indicates a shift in Nigeria’s borrowing approach, moving away from a primary reliance on bilateral creditors like China towards multilateral institutions, notably the World Bank Group. This period also saw renewed access to international capital markets through Eurobond issuances.

Amidst this growth in external debt, the Federal Government is also planning fresh loans from the World Bank, estimated at $1.25 billion. Concerns persist regarding rising debt servicing costs and the country’s widening fiscal deficit.

In parallel, Nigeria’s domestic debt has also seen a substantial rise, increasing from N59.1 trillion to N89.4 trillion. A notable portion of this includes N22.79 trillion in Ways and Means debt from the previous administration, which was capitalized as public debt under the current administration. This suggests a net growth of approximately N7.5 trillion in domestic debt during this period.