Nigeria’s total public debt rose to ₦166.79 trillion as of June 30, 2026, according to new figures from the DMO (Debt Management Office)⁠.

That is about 4.7% higher than the ₦159.35 trillion recorded at the end of March.

In dollar terms, the debt rose from about $114.95 billion to $120.93 billion during the same period.

The figure covers what the Federal Government, the 36 states and the FCT owe domestically and externally — including government bonds, Treasury Bills and loans from foreign lenders.

Most of the debt is domestic

Domestic debt stood at ₦91.59 trillion, making up about 54.9% of Nigeria’s total public debt.

External debt was ₦75.20 trillion, or about 45.1% of the total. (DMO⁠)

Both increased from March.

Domestic debt rose by about ₦4.19 trillion, while external debt increased by roughly ₦3.25 trillion in naira terms.

The Federal Government accounts for most of the country’s debt. It owed about ₦152.77 trillion across domestic and external borrowing, while states and the FCT accounted for about ₦14.01 trillion.

Why can the naira figure change?

Nigeria’s external debts are mostly measured in foreign currencies.

To show those debts in naira, the DMO converts them using the exchange rate on the reporting date.

For the June figures, it used an official exchange rate of ₦1,379.1842 to $1. (DMO⁠)

This means movements in the naira can affect the naira value of external debt even when no new loan is taken.

But exchange-rate conversion does not explain all of this quarter’s increase: Nigeria’s total debt also rose in dollar terms, from $114.95 billion in March to $120.93 billion in June.

Is rising debt automatically bad?

Not necessarily.

Governments borrow to fund infrastructure, budgets and other public spending. Borrowing can be useful when the money finances projects that improve the economy or generate enough value to justify the cost.

The bigger questions are how much the government is borrowing, what the money is used for, and how expensive it is to repay.

A country can therefore have a large debt stock and still manage it, while a smaller debt can become difficult if government revenue is too weak to meet repayments.

This is why the total debt figure alone does not tell the whole story. Debt-service costs and government revenue also matter.

What this means

For the average Nigerian, the debt rising to ₦166.79 trillion does not create an immediate new bill or tax.

The impact is more indirect.

Government must use part of its revenue to pay interest and repay debt. The more expensive those payments become, the less money may be available for other spending unless government revenue also grows.

That can affect how much government has available for roads, schools, healthcare, security and other services.

The key thing to watch is therefore not only whether Nigeria’s debt keeps rising, but whether the country’s revenue and economy are growing strongly enough to manage it.