Federal Government’s domestic debt rose to N77.81 trillion as of September 2025, reflecting the Federal Government’s continued reliance on the local debt market.
This is according to the latest data published by the Debt Management Office (DMO) on its official website.
The figure highlights the dominance of federal bonds in the country’s domestic debt profile and underscores the government’s strategy of blending long-term and short-term borrowing instruments.
The September 2025 figure marks a significant increase compared to N1.707 trillion recorded in the second quarter of 2025 (April–June), based on the DMO’s disclosure. Federal bonds, treasury bills, and smaller allocations across Sukuk, savings bonds, green bonds, and promissory notes account for the bulk of the total.
The breakdown provides insight into how the Federal Government structures its borrowing mix to meet funding and liquidity needs.
What the data is saying
The latest DMO data shows that FGN Bonds account for the largest share of Nigeria’s domestic debt stock. They make up roughly 80 percent of the total portfolio.
- FGN Bonds stand at N61.9 trillion, representing about 80 percent of total domestic debt.
- Within this, FGN Naira Bonds account for N60.64 trillion, while US dollar-denominated bonds account for N1.35 trillion.
- Nigerian Treasury Bills amount to N12.68 trillion, representing 16.3 percent of total domestic debt.
- Sukuk bonds are valued at N1.29 trillion.
FGN Savings Bonds amount to N97.46 billion, representing 0.13 percent of the portfolio, while FGN Green Bonds stand at N62.36 billion, accounting for 0.08 percent. Promissory Notes total N1.69 trillion, or 2.17 percent of outstanding instruments, with N431.22 billion naira-denominated and N1.25 trillion foreign currency-denominated.
The data indicate that conventional bonds and treasury bills remain the dominant instruments in Nigeria’s domestic debt structure, while specialised instruments such as green bonds and savings bonds still account for a relatively small share.
More Insights
The composition of the domestic debt portfolio reflects the Federal Government’s borrowing strategy. Long-term instruments such as FGN Bonds provide stable funding over extended maturities, while treasury bills help manage short-term liquidity requirements.
- FGN Savings Bonds are primarily targeted at retail investors and small savers, offering accessible entry points into government securities and deepening domestic investor participation.
- FGN Green Bonds are earmarked for environmentally sustainable projects, including renewable energy, climate adaptation, and conservation initiatives.
- Sukuk bonds are structured to comply with non-interest financing principles and are often used to fund infrastructure projects.
- Promissory Notes are typically issued to settle verified legacy obligations, including contractor arrears and other approved liabilities, converting them into structured debt.
Although green bonds and savings bonds represent a small fraction of the total portfolio, their presence signals efforts to diversify funding sources and broaden investor participation in the domestic market.
What you should know
The DMO released the Q3 2025 domestic debt data shortly after Nairametrics published a report titled “Why is DMO hoarding Public Debt data?” which questioned the delay in the agency’s disclosure.
- Prior to the release, the DMO had not published Nigeria’s public debt data as of September 2025.
- Based on its established publication pattern, the figures are typically released around December each year.
- The data is usually made available before the Christmas break and ahead of year-end, when analysts update their annual financial models.
The eventual release of the Q3 2025 figures provides clarity on Nigeria’s domestic debt position and offers analysts, investors, and policymakers updated insight into the structure and scale of the Federal Government’s borrowing within the local market.
