By Obah Sylva
Nigeria’s total public debt stock rose to ₦166.79 trillion as of June 30, 2026, an increase of ₦7.44 trillion, or 4.7 per cent, from ₦159.35 trillion at the end of March, according to the Debt Management Office (DMO).
The figure was also about ₦14.39 trillion, or 9.4 per cent, higher than the ₦152.4 trillion recorded in June 2025, renewing debate about borrowing, debt servicing and the value Nigerians receive from public spending.
Key Highlights
- Nigeria’s public debt reached ₦166.79 trillion by June 30, 2026.
- Domestic debt stood at ₦91.59 trillion, or 54.91 per cent of the total.
- External debt was ₦75.20 trillion, or 45.09 per cent.
- The Federal Government accounted for about ₦152.77 trillion, while states and the FCT owed about ₦14.01 trillion.
- The DMO valued the total at approximately $120.93 billion using the CBN exchange rate on June 30.
- Atiku Abubakar called for greater transparency over borrowing and debt-service figures.
Nigeria’s Public Debt Rises to ₦166.79 Trillion
The DMO’s June 2026 public debt report puts the combined obligations of the Federal Government, states and the Federal Capital Territory at ₦166.79 trillion.
Domestic obligations accounted for ₦91.59 trillion, representing 54.91 per cent of the total. External debt stood at ₦75.20 trillion, or 45.09 per cent.
The DMO reported the debt at approximately $120.93 billion using the Central Bank of Nigeria’s exchange rate of ₦1,379.1842 to the dollar as of June 30. The naira value of external debt reflects the exchange rate used for conversion as well as the underlying obligations.
Federal Government Accounts for Majority of Debt
The Federal Government accounted for approximately ₦152.77 trillion of the total, while the 36 states and the FCT collectively accounted for about ₦14.01 trillion.
The increase in the headline debt stock is nominal. Its implications also depend on revenue, the cost of servicing obligations, and whether borrowed funds support projects and services that produce lasting economic value.
Debt Servicing Remains a Fiscal Concern
The DMO recorded approximately ₦2.14 trillion in Federal Government domestic debt-service payments during the second quarter of 2026. Debt servicing remains a central part of the fiscal debate because payments on existing obligations compete with other demands on public resources.
Analysts and policymakers have also debated the relationship between Nigeria’s borrowing, government revenue and the funds available for infrastructure, healthcare, education, social programmes and security.
Debate Over Borrowing and Household Impact
Critics of the government’s borrowing strategy say that rising obligations have coincided with cost-of-living pressures and argue for clearer accounts of how loans and other debt proceeds are used. Supporters say borrowing can help finance infrastructure and development priorities.
The key question is whether borrowed funds generate sufficient economic and public returns to justify their financing and repayment costs. The debt total alone does not answer that question.
Atiku Questions Nigeria’s Borrowing and Debt Figures
Former Vice-President Atiku Abubakar criticised the administration of President Bola Tinubu and called for clearer explanations of new borrowing, debt-service obligations and the use of public revenue. He also questioned aspects of external debt-service reporting and urged reconciliation of the figures.
Atiku’s comments are part of the wider political debate about fiscal management. His criticism and the government’s position should be considered alongside the DMO’s published debt data.
Nigerians Debate the Rising Debt
Public reactions have reflected differing views about Nigeria’s debt. Some have questioned what the country is achieving with borrowed funds and called for greater transparency. Others argue that borrowing for productive infrastructure can be justified if projects deliver measurable benefits and strengthen future revenue.
The debate centres on both the size of the obligations and Nigeria’s capacity to generate revenue, manage repayment costs and show the results of public spending.
What the Debt Figures Mean for Households
The effect of public debt on households depends on how funds are deployed, the cost of servicing them and the government’s ability to raise revenue. Higher debt-service obligations can narrow the resources available for other priorities, while productive investment may support economic activity and future revenues.
Nigeria’s debt figures therefore sharpen questions about transparency, revenue mobilisation and whether borrowing is producing measurable public value.
Borrowing Debate Expected to Continue
With public debt at ₦166.79 trillion at the end of June 2026, scrutiny of borrowing, debt servicing and the outcomes of government spending is likely to continue. The DMO figures provide the latest snapshot; the policy debate turns on how the obligations are managed and what results they deliver.
Read Also:
- Nigeria to spend $11.6bn on debt servicing in 2026, Tinubu reveals
- Tinubu’s N65.9 trillion debt sparks fresh concern over Nigeria’s rising borrowing
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