Introduction

Nigeria's public debt stock reached a new milestone, hitting N166.79 trillion by the close of Q2 2026. The figure, released by the Debt Management Office, marks a significant increase from the previous quarter and reflects continued borrowing across federal and subnational entities.

What Happened

Total public debt rose to N166.79 trillion as of June 30, 2026, up from N159.35 trillion as of March 31, 2026. Domestic debt accounted for N91.59 trillion, representing 54.91% of the overall portfolio, while external debt stood at $120.93 billion in dollar terms, converted using the Central Bank of Nigeria's official exchange rate. The Federal Government of Nigeria held the largest share, with N152.77 trillion of the total debt, compared to N14.01 trillion attributed to states and the Federal Capital Territory.

  • Domestic debt: N91.59 trillion (54.91% of total)
  • External debt: $120.93 billion (equivalent at official CBN rate)
  • FGN external debt: N65.77 trillion (39.44% of total)
  • States and FCT external debt: N9.42 trillion (5.65%)

Why This Matters

The latest figures underscore the federal government's dominant role as the primary borrower in Nigeria's debt structure, particularly on the domestic side. FGN domestic debt totaled N87.00 trillion, with Federal Government bonds comprising N64.84 trillion, representing 74.53% of that segment. Treasury bills, Sukuk, and savings bonds further diversified the portfolio, while external debt growth from $42.49 billion in December 2023 to $51.86 billion by December 2025 signals increasing foreign-currency obligations. For states and the FCT, external and domestic debt combined reached N14.01 trillion, highlighting the broader fiscal footprint beyond the federal level. The data also shows a sharp rise from N87.38 trillion in June 2023, when the current administration took office, reflecting cumulative borrowing trends.

Key Takeaways

  • Total public debt reached N166.79 trillion in Q2 2026, up 4.7% quarter-on-quarter.
  • Domestic debt (N91.59 trillion) makes up over half of the total portfolio.
  • Federal Government bonds (N64.84 trillion) dominate domestic debt composition.
  • External debt totaled $120.93 billion, with FGN external debt at N65.77 trillion.
  • States and FCT combined account for N14.01 trillion of the total debt stock.
  • Debt has grown from N87.38 trillion in June 2023 to N166.79 trillion in Q2 2026.

Conclusion

The Q2 2026 debt figures reveal a continuing trajectory of elevated borrowing, with domestic obligations driving most of the increase. As Nigeria navigates fiscal pressures, the composition of debt heavily weighted toward federal government bonds and naira-denominated instruments will shape interest rate sensitivity, currency stability, and future borrowing capacity. Stakeholders will be watching how these levels influence debt servicing costs and macroeconomic policy in the coming quarters.