93% of Nigeria's public debt is owed by the Federal Government

Key Takeaways

  • The Federal Government’s share of total public debt rose from 79.5% in 2019 to 92.6% in 2025.
  • States’ share has more than halved, from 20.5% to 7.4% in six years.
  • Total public debt grew from $83.9 billion to $99.7 billion, peaking at $113.4 billion in 2023.
  • Nigeria’s debt burden is increasingly concentrated at the centre, amplifying federal repayment risks and reducing fiscal independence for states.

Over the last six years, Nigeria’s debt story has become more centralised. In 2019, the Federal Government owed roughly four-fifths of the country’s total debt, but by mid-2025, it owed more than nine-tenths. While total public debt climbed from $83.9 billion to $99.7 billion, state governments’ share shrank drastically.

This shift means borrowing power and pressure now sits firmly in the FCT. The states, once active borrowers for infrastructure and development, are now mostly dependent on federal allocations rather than credit markets. As a result, debt servicing decisions, interest risks, and repayment pressures are increasingly tied to the federal purse.

In short, Nigeria’s debt may be national but the burden is mostly federal.

Source:

Debt Management Office

Period:

June 2019 - June 2025
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