The Federal Government’s domestic debt increased by N7.40tn within nine months, largely driven by fresh issuances of FGN bonds and higher Treasury Bills, data from the Debt Management Office has shown.
Figures released by the DMO indicate that total domestic debt rose from N70.41tn as of December 31, 2024, to N77.81tn as of September 30, 2025. This represents an increase of N7.40tn, or 10.52 per cent, within the period.
An analysis of the breakdown shows that FGN Bonds remain the dominant component of the Federal Government’s domestic debt portfolio.
As of December 31, 2024, total FGN Bonds stood at N55.44tn, accounting for 78.73 per cent of total domestic debt. By September 30, 2025, the figure had risen to N61.99tn, representing 79.67 per cent of the total stock.
This reflects an increase of N6.56tn in bond issuances within nine months.
The bond portfolio comprises both Naira-denominated bonds and domestic FGN US Dollar bonds. As of September 2025, Naira bonds accounted for N60.64tn, while domestic US Dollar bonds stood at N1.35tn.
In December 2024, Naira bonds were valued at N54.03tn, while domestic US Dollar bonds amounted to N1.41tn.
The data suggest that while Naira bond issuance expanded significantly, the Naira value of the domestic US Dollar bond component declined slightly due to exchange rate conversion adjustments and portfolio movements.
Nigerian Treasury Bills remained the second-largest component of domestic debt.
Treasury Bills rose from N12.35tn in December 2024 to N12.68tn in September 2025, marking an increase of N332.39bn. However, their share of total domestic debt declined from 17.54 per cent to 16.30 per cent, indicating faster growth in bond issuances.
FGN Sukuk also recorded growth. The instrument increased from N992.56bn to N1.29tn within the period, representing a rise of about N300bn. Its share of total domestic debt rose from 1.41 per cent to 1.66 per cent.
FGN Savings Bonds climbed modestly from N72.87bn to N97.46bn, reflecting an increase of N24.60bn. Their contribution to total debt remained marginal at 0.13 per cent.
Green Bonds recorded a notable relative increase. The stock grew from N15bn in December 2024 to N62.36bn in September 2025, an addition of N47.36bn. Though still a small share of the total portfolio, the rise indicates continued use of thematic financing instruments.
Promissory Notes also increased, rising from N1.54tn at the end of 2024 to N1.69tn by September 2025, a growth of N142.95bn.
Within this category, Naira-denominated Promissory Notes rose slightly from N425.65bn to N431.22bn. Foreign currency-denominated Promissory Notes increased from N1.12tn to N1.25tn, reflecting exchange rate adjustments and outstanding obligations.
The DMO noted that the December 2024 figures excluded FGN Bonds worth N680.42bn issued to restructure states’ commercial debt. The December report also included the restructured Ways and Means Advances of N22.719tn, converted into FGN Bonds issued to the Central Bank of Nigeria following approvals granted in May 2023.
For the September 2025 data, the DMO stated that domestic US Dollar bonds and foreign currency-denominated Promissory Notes were converted to Naira using official exchange rates as of September 30, 2025.
The N7.40tn increase within nine months highlights the Federal Government’s continued reliance on domestic borrowing to finance fiscal deficits, manage maturing obligations, and fund budgetary requirements.
With total domestic debt now at N77.81tn, FGN Bonds remain the primary financing instrument, accounting for nearly 80 per cent of the total stock.
