Nigeria’s broader fiscal exposure has climbed to approximately N174.6 trillion after the Debt Management Office (DMO) disclosed N7.8 trillion in contingent liabilities alongside a N166.8 trillion public debt stock at the end of June 2026.
The disclosure provides a wider view of the Federal Government’s potential obligations beyond conventional domestic and external borrowings recorded as public debt.
Data released by the DMO showed that Nigeria’s total public debt increased 4.7 percent from N159.4 trillion at the end of March 2026 to N166.8 trillion at the end of the first half of the year.
Domestic debt accounted for approximately 54.9 percent of the total, while external obligations represented 45.1 percent, broadly maintaining the government’s targeted 55:45 domestic-to-external debt mix.
Domestic debt increased from N87.4 trillion in March to about N91.6 trillion at the end of June, representing growth of 4.8 percent during the quarter.
External debt, meanwhile, increased 5 percent to $54.5 billion over the same period.
The DMO separately published its outstanding contingent liabilities as of June 30, 2026, with the liabilities standing at approximately N7.8 trillion.
When added to the N166.8 trillion recognised public debt stock, the two categories amount to approximately N174.6 trillion in combined debt and contingent fiscal exposure.
The distinction is important because contingent liabilities are not the same as outstanding public debt.
Rather, they represent obligations that may become direct government liabilities if specified conditions or guarantees are triggered. The official public debt stock therefore remains N166.8 trillion.
First Abu Dhabi Bank Deal Accounts for N2.7tn
A significant component of the contingent liabilities is connected to the Federal Government’s Total Return Swap arrangement with First Abu Dhabi Bank.
The arrangement accounted for approximately N2.7 trillion, equivalent to about 35 percent of the disclosed contingent liabilities.
The exposure relates to collateralisation associated with Nigeria’s $1.5 billion drawdown under a $5 billion Total Return Swap facility arranged with First Abu Dhabi Bank.
The DMO separately published a detailed FAQ on the $5 billion facility in August as part of efforts to explain the structure of the transaction.
Under the arrangement, Nigeria secured access to foreign-currency financing through a structure involving government securities as collateral.
The N2.7 trillion exposure disclosed for the transaction does not mean the Federal Government currently owes an additional N2.7 trillion on top of its public debt.
Instead, its inclusion among contingent liabilities highlights the potential fiscal exposure associated with the structure.
Debt Stock Adds N7.4tn in Three Months
Nigeria’s recognised public debt increased by about N7.4 trillion between March and June alone, rising from N159.4 trillion to N166.8 trillion.
The increase was driven by growth in both domestic and external obligations as the government continued borrowing to finance expenditure requirements.
Domestic borrowing remains the larger component of Nigeria’s debt portfolio, accounting for almost 55 percent of outstanding debt.
The latest composition remains close to the DMO’s Medium-Term Debt Management Strategy for 2024 to 2027, which targets a 55 percent domestic and 45 percent external financing mix.
While conventional public debt remains the primary measure used in assessing the government’s indebtedness, the publication of contingent liabilities gives investors and analysts another layer through which Nigeria’s fiscal position can be assessed.
The DMO published both its June 2026 public debt figures and outstanding contingent-liability data on September 25.
The additional disclosure is particularly significant because guarantees, collateral arrangements and other contingent obligations can potentially migrate onto the government’s balance sheet when underlying conditions are triggered.
For investors, the N174.6 trillion combined figure therefore provides a broader measure of potential fiscal exposure, while Nigeria’s officially recognised public debt stock remains N166.8 trillion.
