Nigeria’s Debt Hits ₦152.4 Trillion in the First Half of 2025

The Debt Management Office (DMO) recently released new data showing that Nigeria’s total public debt rose to ₦152.4 trillion as of June 2025.

About ₦80.55 trillion (52.9%) of this amount is domestic debt, i.e., money borrowed locally through instruments like Federal Government Bonds, Treasury Bills, Promissory Notes, and others. The Federal Government is responsible for most of it (₦76.59 trillion), while States and the FCT owe the rest.

The remaining ₦71.85 trillion (47.1%) is external debt, which includes loans and bonds sourced from outside Nigeria. With oil production still below target and non-oil revenues performing poorly, the government has continued turning to borrowing to meet its spending needs.

A breakdown of the local debt shows that:

FGN Bonds total ₦60.65 trillion, made up of:

• Regular naira bonds (₦36.52 trillion)
• Securitised Ways and Means loans from the CBN (₦22.72 trillion)
• Dollar bonds (₦1.40 trillion)

Other instruments include:

Sukuk Bonds: ₦1.29 trillion

Savings Bonds: ₦91.53 billion

Green Bonds: ₦62.35 billion

Promissory Notes: ₦1.73 trillion

Overall, the data shows the government is trying to diversify its borrowing sources and attract different types of investors, but it also highlights Nigeria’s growing reliance on debt to fund its budget.

Nigeria Exits FATF Grey List

In positive news, Nigeria has officially been removed from the Financial Action Task Force (FATF) grey list — a global watchlist for countries with weak measures against money laundering and terrorism financing.

Being on the grey list since 2023 meant Nigeria was under closer international scrutiny, which made it harder and more expensive for local banks and businesses to process cross-border transactions or attract foreign investments.

Now that Nigeria has exited the list, it signals that the country has strengthened its financial regulations and improved systems for tracking and preventing illicit financial flows.

This move is expected to boost investor confidence, ease international trade and remittances, and improve Nigeria’s overall global financial reputation — a key step toward stabilizing the economy and restoring trust in its financial system.

Equities Market Update

NGX Ends the Week Strong

The Nigerian Exchange (NGX) closed the week on a strong bullish note, with the All-Share Index (ASI) rising by 4.47% to 155,640.55 points. Market capitalization also jumped to ₦98.79 trillion, showing renewed investor confidence.

Overall, trading activity picked up — investors traded 3.69 billion shares worth ₦129.89 billion, compared to 2.42 billion shares worth ₦76.62 billion the previous week. This means more people are actively buying and selling stocks, both in volume and value.

Sector Highlights

• Industrial Goods was the top performer of the week, gaining 10.61%, thanks to big moves from BUA Cement (+12.50%) and Dangote Cement (+10.83%).
• Oil & Gas also had a great week, up 9.13%, boosted by Aradel Holdings (+25.20%).
• Consumer Goods rose 3.94%, helped by strong performances from PZ Cussons (+14.19%) and NASCON (+12.77%).
• On the downside, Banking stocks fell 1.35% due to sell-offs in Stanbic IBTC (-9.15%), while the Insurance sector slipped 1.10%, dragged by Regency Alliance (-8.45%) and Guinea Insurance (-8.05%).

In summary, it was a solid week for the market, led by gains in industrial and energy stocks, even though banking and insurance took a bit of a breather.

Fixed Income Update

Liquidity Improves, Rates Ease Slightly

The fixed income market ended the week on a positive note as system liquidity (the amount of cash available in the banking system) improved to ₦3.12 trillion, up from ₦1.80 trillion last week.

Because of this, short-term lending rates among banks eased a bit — the Overnight Rate closed at 24.83%, while the Open Repo (OPR) rate settled slightly lower at 24.50%.

OMO and Treasury Bills Auctions

During the week, the Central Bank of Nigeria (CBN) held two key auctions:

OMO Auction (Tuesday)

The CBN offered ₦600 billion split evenly between 196-day and 252-day bills. Investor demand was strong — total bids hit ₦1.11 trillion, mostly for the longer 252-day bill. Eventually, the CBN sold ₦827 billion, at rates of 19.50% (196-day) and 19.84% (252-day).

Treasury Bills Auction (Wednesday)

The Debt Management Office (DMO), through the CBN, offered ₦650 billion across 91-day, 182-day, and 364-day bills. Investors subscribed about ₦750 billion, but the CBN allotted ₦391 billion in total. Stop rates rose slightly to 15.30% (91-day), 15.50% (182-day), and 16.14% (364-day) — indicating higher yields for investors.

Secondary Market Trends

Activity in the secondary market was relatively quiet, but yields moved slightly in mixed directions:

In the Treasury Bills market, there was mild buying interest at the shorter end - 3-month and 6-month bills dropped by 5bps each to 16.33% and 17.32%, respectively. The 1-year bill stayed flat at 18.12%.

In the bonds market, investors showed selective interest in mid-term maturities - Yields on 5-year and 7-year bonds fell to 15.64% and 15.81%, respectively. Longer-term bonds largely held steady.

Overall, the week saw strong liquidity, high demand for CBN instruments, and slightly lower short-term rates, suggesting more confidence and active participation in the fixed income space.

Market Outlook for the Coming Week

Equities: Bullish Momentum Continues

The stock market ended last week on a very strong note, with the All-Share Index (ASI) hitting new all-time highs. This strong momentum is expected to carry into Monday’s session, as investor confidence remains high.

One stock to watch is Nigerian Breweries (NB) - it saw a sharp price breakout late on Friday after trading quietly for most of the day. This kind of move usually signals strong demand and potential follow-through buying, meaning NB could see more upward activity at the start of the week.

Fixed Income: Focus on FAAC and Bond Auction

In the fixed income market, system liquidity is expected to stay healthy, helped by FAAC inflows (funds shared between the Federal, State, and Local Governments).

Investors will also keep an eye on the FGN Bond auction scheduled for Monday, where the Debt Management Office (DMO) plans to offer ₦120–₦150 billion each across the 5-year and 7-year bonds.

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