Nigeria’s complete external debt inventory rose to $145.02 billion in 2025, representing a 6.6 per cent enhance from the earlier yr, in accordance to the World Bank.
The personal non-guaranteed and short-term obligations accounted for greater than half of the nation’s external debt.
This is contained in the World Bank’s International Debt Report 2026 exhibiting that Nigeria’s external debt elevated from $83.21 billion in 2015 to $145.015 billion in 2025, a 74.3 per cent enhance in 10 years.
Nigeria’s profile confirmed that public and publicly assured debt accounted for $62.4 billion of the full, whereas personal non-guaranteed debt stood at $54.476 billion. Short-term external debt accounted for an additional $28.139 billion.
This implies that Nigeria’s external debt publicity extends past direct authorities borrowing to embrace obligations contracted by personal entities with out public ensures and short-term liabilities.
Debt transparency issues
The World Bank report warned that rising debt shares and debt-servicing obligations had been placing strain on growing economies, at the same time as worldwide capital markets reopened to some debtors.
It stated external debt throughout low- and middle-income nations elevated by 5.5 per cent to a report $9.4 trillion in 2025, the biggest annual enhance in 4 years.
According to the report, the return to worldwide capital markets had been uneven, with the poorest and most weak nations going through borrowing prices not seen for the reason that late Eighties.
In the report’s foreword, Haishan Fu, the Chief Statistician of the World Bank Group, stated that the full debt-service burden of low- and middle-income nations had elevated for a fifth consecutive yr in 2025.
She stated the rising debt-service burden was decreasing the sources out there for infrastructure, jobs, schooling, healthcare and different improvement priorities.
“Against this backdrop, knowing how much countries owe, to whom, and on what terms has never been more important. Without reliable and reconciled information, governments cannot manage debt effectively, creditors cannot assess risks accurately, and debt restructurings can become more difficult,” Ms Fu stated.
The financial institution’s chief statistician stated transparency was a shared accountability requiring debtors to keep complete and well timed debt information, collectors to disclose details about their obligations and worldwide establishments to strengthen reporting requirements and debt-management methods.
“The message of this year’s report is clear: access to finance is not enough. We must know the debt, understand its terms, and ensure that the financing developing economies receive strengthens rather than constrains their ability to grow, withstand shocks, and improve the lives of their people,” she stated.
Nigeria debt breakdown
A breakdown of Nigeria’s $62.4 billion in public and publicly assured external debt confirmed that multilateral collectors accounted for $31.365 billion, bilateral collectors $6.683 billion and personal collectors $24.352 billion.
The World Bank’s International Development Association (IDA) accounted for $18.533 billion of the multilateral debt, whereas International Monetary Fund credit score and Special Drawing Rights allocations stood at $5.516 billion.
Also, different multilateral collectors accounted for $7.315 billion.
China was Nigeria’s largest bilateral creditor, with $5.672 billion, adopted by France with $774 million, whereas different bilateral collectors accounted for $237 million.
Debt ratios
The report additionally confirmed that Nigeria’s external debt-to-exports ratio stood at 212 per cent in 2025, whereas external debt as a share of Gross National Income was 51 per cent.
Debt service accounted for 19 per cent of exports and 5 per cent of GNI in the course of the yr.
On the phrases of latest borrowing, the report put the common maturity of Nigeria’s 2025 commitments from official collectors at 25 years, with a five-year grace interval and an rate of interest of 1.9 per cent.
However, new commitments from personal collectors carried a median maturity of 12 years, an eight-year grace interval and an rate of interest of 9.6 per cent.
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The report additionally highlighted Nigeria’s return to worldwide capital markets, noting that the nation, the third-largest issuer in Sub-Saharan Africa, raised $2.3 billion by way of a dual-tranche worldwide bond challenge in 2025.
One tranche had a 10-year maturity and an rate of interest of 8.625 per cent, whereas the second had a 20-year maturity and an rate of interest of 9.125 per cent.
It additional disclosed that Nigeria entered right into a $5 billion Total Return Swap transaction in 2026, with a three-year maturity and collateralisation of roughly 133 per cent, equal to about $6.7 billion in home securities.
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