Nigeria’s External Debt Rises To $145bn As World Bank Flags...
AI Executive Briefing
Verified Synthesis~25s readNigeria’s external debt stock increased to $145.02bn at the end of 2025, representing a 6.6 per cent rise from the previous year, according to the World Bank’s International Debt Report 2026. The report released on Thursday, provides a detailed assessment of external borrowing among low- and middle-income countries. It showed.that Nigeria’s external debt has risen substantially over the past decade, increasing from $83.21bn in 2015 to $145.02bn in 2025. The latest figure represents an increase of about $61.8bn over the 10-year period, highlighting the growing scale of Nigeria’s financial obligations to foreign creditors. The World Bank report, which analysed external debt positions as of December 2025, puts Nigeria’s total external debt at $145.015bn, comprising $62.4bn in public and publicly guaranteed debt, $54.476bn in private nonguaranteed debt and $28.139bn in short-term obligations. The figures indicate that government and government-guaranteed borrowing account for less than half of Nigeria’s total external debt, while private sector borrowing without public guarantees and short-term obligations make up a substantial proportion. According to the report, public and publicly guaranteed debt refers to external obligations owed by public institutions, including the central government and state-owned enterprises, as well as private sector borrowing backed by government guarantees. Private nonguaranteed debt, on the other hand, covers long-term external obligations of private borrowers that are not guaranteed by a public institution. The report explained that external debt includes actual liabilities owed by residents of a country to non-residents, whether denominated in domestic or foreign currencies, and requires the repayment of principal, interest or both. Beyond the size of the debt stock, the World Bank report highlighted the increasing pressure of debt servicing on developing economies, with Nigeria recording a deterioration in some of its debt-service indicators in 2025. Nigeria’s external debt-to-exports ratio stood at 212 per cent in 2025, while its external debt-to-gross national income (GNI) ratio was 51 per cent. The report also put Nigeria’s debt-service-to-exports ratio at 19 per cent and debt-service-to-GNI ratio at five per cent. While the external debt-to-exports and debt-to-GNI ratios declined by 4.3 per cent and 6.6 per cent respectively from their 2024 levels, the debt-service-to-exports ratio increased by 9.6 per cent, while debt service relative to GNI rose by 6.9 per cent. The figures suggest that although Nigeria’s external debt relative to national income and export earnings improved marginally, the burden of servicing its obligations increased during the year. The report noted that debt-service payments among low- and middle-income countries had increased for five consecutive years, reaching $1.4tn in 2025. It said the payments increased by 1.9 per cent during the year, driven largely by obligations to private creditors, particularly international bondholders. Between 2022 and 2025, the countries covered by the report paid approximately $436.1bn more in debt servicing than they received in new financing. The World Bank, however, noted that the trend reversed in 2025, when long-term debt flows recorded a net inflow of $45.4bn, compared with a net outflow of $118.4bn in 2024. In its foreword to the report, the World Bank’s Chief Statistician, Haishan Fu, described the situation as a troubling paradox in which developing economies were gaining access to international financing but paying more to secure it. ”Low- and middle-income countries are borrowing more, paying more, and, in many cases, leaving less for long-term development,” Fu said. He warned that rising debt-service obligations were absorbing resources needed for infrastructure, employment, education, healthcare and other development priorities. ”The objective should, therefore, not be more debt.
Context & Background
- ✦It should be better financing that is affordable, transparent, sustainable, and capable of supporting investment and growth,” he said. The report also highlighted Nigeria’s return to the international bond market in 2025, when the country raised $2.3bn through a dual-tranche sovereign bond issuance. According to the World Bank, Nigeria was the third-largest issuer among Sub-Saharan African countries eligible for International Development Association (IDA) financing during the year. The $2.3bn issuance comprised a 10-year bond with an interest rate of 8.625 per cent and a 20-year bond carrying an interest rate of 9.125 per cent. The borrowing reflected Nigeria’s continued access to international capital markets, but the interest rates also illustrate the relatively high cost of raising foreign financing. The report noted that the return of developing economies to international bond markets in 2025 was accompanied by elevated borrowing costs, particularly for countries with weaker credit profiles. Across IDA-eligible countries, the average interest rate on new commitments from private creditors rose to 8.2 per cent in 2025, the highest level since the late 1980s. By comparison, the average interest rate on new commitments from official creditors remained relatively stable at 2.7 per cent between 2024 and 2025. The World Bank said the difference between the interest rates charged by private and official creditors to IDA-eligible countries had widened to 5.5 percentage points in 2025, compared with 3.4 percentage points in 2016. Although Nigeria is classified as a lower-middle-income country eligible for both IBRD and IDA financing, the report’s country profile shows that its average interest rate on new official external debt commitments in 2025 was 1.9 per cent, compared with 9.6 per cent for private creditors. The average maturity of Nigeria’s new official borrowing commitments was 25 years, with a five-year grace period, while private creditor commitments had an average maturity of 12 years and an eight-year grace period. The difference highlights the comparatively expensive nature of borrowing from private international lenders Another significant development highlighted in the report is Nigeria’s use of a relatively complex financing arrangement known as a Total Return Swap (TRS). The World Bank identified Nigeria, Angola, Argentina, Colombia and Senegal among countries that had entered into TRS arrangements since 2024. It explained that these transactions allow sovereign borrowers to obtain foreign currency liquidity by pledging government securities or other assets as collateral. According to the report, Nigeria entered into a $5bn TRS transaction in 2026 with a three-year maturity and collateralisation ratio of approximately 133 per cent. This means that Nigeria pledged domestic securities worth approximately $6.7bn as collateral for the $5bn financing. The report explained that such arrangements could provide governments with foreign currency quickly and potentially at lower short-term financing rates than conventional borrowing. However, it warned that the arrangements also carry significant collateral, margin-call, refinancing and transparency risks. It said the growing use of TRS financing raises questions about whether headline debt statistics adequately capture the full extent of governments’ financial obligations and associated risks. The World Bank noted that where a sovereign borrower receives cash upfront and is unconditionally required to repay it, the financing constitutes debt, even though the transaction may also have a derivative component. It also recommended that governments disclose the amount borrowed, maturity, collateralisation ratio, type of collateral, margin requirements and repayment obligations associated with such arrangements. The report warned that failure to provide such information could make it difficult to establish the full extent of a country’s financial exposure. Nigeria’s debt position forms part of a broader increase in external borrowing across developing economies, with several African countries recording significant increases in their debt stocks in 2025.
Key Figures & Named Entities
2025:Nigeria’s external debt stock increased to $145.02bn at the end of 2025, representing a 6.6 per cent rise from the previous year, according to the World Bank’s International Debt Report 2026. The report released on Thursday, provides a detailed assessment of external borrowing among low- and middle-income countries.2025:It showed.that Nigeria’s external debt has risen substantially over the past decade, increasing from $83.21bn in 2015 to $145.02bn in 2025. The latest figure represents an increase of about $61.8bn over the 10-year period, highlighting the growing scale of Nigeria’s financial obligations to foreign creditors. The World Bank report, which analysed external debt positions as of December 2025, puts Nigeria’s total external debt at $145.015bn, comprising $62.4bn in public and publicly guaranteed debt, $54.476bn in private nonguaranteed debt and $28.139bn in short-term obligations. The figures indicate that government and government-guaranteed borrowing account for less than half of Nigeria’s total external debt, while private sector borrowing without public guarantees and short-term obligations make up a substantial proportion. According to the report, public and publicly guaranteed debt refers to external obligations owed by public institutions, including the central government and state-owned enterprises, as well as private sector borrowing backed by government guarantees. Private nonguaranteed debt, on the other hand, covers long-term external obligations of private borrowers that are not guaranteed by a public institution. The report explained that external debt includes actual liabilities owed by residents of a country to non-residents, whether denominated in domestic or foreign currencies, and requires the repayment of principal, interest or both. Beyond the size of the debt stock, the World Bank report highlighted the increasing pressure of debt servicing on developing economies, with Nigeria recording a deterioration in some of its debt-service indicators in 2025. Nigeria’s external debt-to-exports ratio stood at 212 per cent in 2025, while its external debt-to-gross national income (GNI) ratio was 51 per cent. The report also put Nigeria’s debt-service-to-exports ratio at 19 per cent and debt-service-to-GNI ratio at five per cent. While the external debt-to-exports and debt-to-GNI ratios declined by 4.3 per cent and 6.6 per cent respectively from their 2024 levels, the debt-service-to-exports ratio increased by 9.6 per cent, while debt service relative to GNI rose by 6.9 per cent. The figures suggest that although Nigeria’s external debt relative to national income and export earnings improved marginally, the burden of servicing its obligations increased during the year. The report noted that debt-service payments among low- and middle-income countries had increased for five consecutive years, reaching $1.4tn in 2025. It said the payments increased by 1.9 per cent during the year, driven largely by obligations to private creditors, particularly international bondholders. Between 2022 and 2025, the countries covered by the report paid approximately $436.1bn more in debt servicing than they received in new financing. The World Bank, however, noted that the trend reversed in 2025, when long-term debt flows recorded a net inflow of $45.4bn, compared with a net outflow of $118.4bn in 2024. In its foreword to the report, the World Bank’s Chief Statistician, Haishan Fu, described the situation as a troubling paradox in which developing economies were gaining access to international financing but paying more to secure it. ”Low- and middle-income countries are borrowing more, paying more, and, in many cases, leaving less for long-term development,” Fu said. He warned that rising debt-service obligations were absorbing resources needed for infrastructure, employment, education, healthcare and other development priorities. ”The objective should, therefore, not be more debt.2025:It should be better financing that is affordable, transparent, sustainable, and capable of supporting investment and growth,” he said. The report also highlighted Nigeria’s return to the international bond market in 2025, when the country raised $2.3bn through a dual-tranche sovereign bond issuance. According to the World Bank, Nigeria was the third-largest issuer among Sub-Saharan African countries eligible for International Development Association (IDA) financing during the year. The $2.3bn issuance comprised a 10-year bond with an interest rate of 8.625 per cent and a 20-year bond carrying an interest rate of 9.125 per cent. The borrowing reflected Nigeria’s continued access to international capital markets, but the interest rates also illustrate the relatively high cost of raising foreign financing. The report noted that the return of developing economies to international bond markets in 2025 was accompanied by elevated borrowing costs, particularly for countries with weaker credit profiles. Across IDA-eligible countries, the average interest rate on new commitments from private creditors rose to 8.2 per cent in 2025, the highest level since the late 1980s. By comparison, the average interest rate on new commitments from official creditors remained relatively stable at 2.7 per cent between 2024 and 2025. The World Bank said the difference between the interest rates charged by private and official creditors to IDA-eligible countries had widened to 5.5 percentage points in 2025, compared with 3.4 percentage points in 2016. Although Nigeria is classified as a lower-middle-income country eligible for both IBRD and IDA financing, the report’s country profile shows that its average interest rate on new official external debt commitments in 2025 was 1.9 per cent, compared with 9.6 per cent for private creditors. The average maturity of Nigeria’s new official borrowing commitments was 25 years, with a five-year grace period, while private creditor commitments had an average maturity of 12 years and an eight-year grace period. The difference highlights the comparatively expensive nature of borrowing from private international lenders Another significant development highlighted in the report is Nigeria’s use of a relatively complex financing arrangement known as a Total Return Swap (TRS). The World Bank identified Nigeria, Angola, Argentina, Colombia and Senegal among countries that had entered into TRS arrangements since 2024. It explained that these transactions allow sovereign borrowers to obtain foreign currency liquidity by pledging government securities or other assets as collateral. According to the report, Nigeria entered into a $5bn TRS transaction in 2026 with a three-year maturity and collateralisation ratio of approximately 133 per cent. This means that Nigeria pledged domestic securities worth approximately $6.7bn as collateral for the $5bn financing. The report explained that such arrangements could provide governments with foreign currency quickly and potentially at lower short-term financing rates than conventional borrowing. However, it warned that the arrangements also carry significant collateral, margin-call, refinancing and transparency risks. It said the growing use of TRS financing raises questions about whether headline debt statistics adequately capture the full extent of governments’ financial obligations and associated risks. The World Bank noted that where a sovereign borrower receives cash upfront and is unconditionally required to repay it, the financing constitutes debt, even though the transaction may also have a derivative component. It also recommended that governments disclose the amount borrowed, maturity, collateralisation ratio, type of collateral, margin requirements and repayment obligations associated with such arrangements. The report warned that failure to provide such information could make it difficult to establish the full extent of a country’s financial exposure. Nigeria’s debt position forms part of a broader increase in external borrowing across developing economies, with several African countries recording significant increases in their debt stocks in 2025.
Outlook & Next Steps
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Key Takeaways
Verified Extract- Nigeria’s external debt stock increased to $145.02bn at the end of 2025, representing a 6.6 per cent rise from the previous year, according to the World Bank’s International Debt Report 2026. The report released on Thursday, provides a detailed assessment of external borrowing among low- and middle-income countries.
- It showed.that Nigeria’s external debt has risen substantially over the past decade, increasing from $83.21bn in 2015 to $145.02bn in 2025. The latest figure represents an increase of about $61.8bn over the 10-year period, highlighting the growing scale of Nigeria’s financial obligations to foreign creditors. The World Bank report, which analysed external debt positions as of December 2025, puts Nigeria’s total external debt at $145.015bn, comprising $62.4bn in public and publicly guaranteed debt, $54.476bn in private nonguaranteed debt and $28.139bn in short-term obligations. The figures indicate that government and government-guaranteed borrowing account for less than half of Nigeria’s total external debt, while private sector borrowing without public guarantees and short-term obligations make up a substantial proportion. According to the report, public and publicly guaranteed debt refers to external obligations owed by public institutions, including the central government and state-owned enterprises, as well as private sector borrowing backed by government guarantees. Private nonguaranteed debt, on the other hand, covers long-term external obligations of private borrowers that are not guaranteed by a public institution. The report explained that external debt includes actual liabilities owed by residents of a country to non-residents, whether denominated in domestic or foreign currencies, and requires the repayment of principal, interest or both. Beyond the size of the debt stock, the World Bank report highlighted the increasing pressure of debt servicing on developing economies, with Nigeria recording a deterioration in some of its debt-service indicators in 2025. Nigeria’s external debt-to-exports ratio stood at 212 per cent in 2025, while its external debt-to-gross national income (GNI) ratio was 51 per cent. The report also put Nigeria’s debt-service-to-exports ratio at 19 per cent and debt-service-to-GNI ratio at five per cent. While the external debt-to-exports and debt-to-GNI ratios declined by 4.3 per cent and 6.6 per cent respectively from their 2024 levels, the debt-service-to-exports ratio increased by 9.6 per cent, while debt service relative to GNI rose by 6.9 per cent. The figures suggest that although Nigeria’s external debt relative to national income and export earnings improved marginally, the burden of servicing its obligations increased during the year. The report noted that debt-service payments among low- and middle-income countries had increased for five consecutive years, reaching $1.4tn in 2025. It said the payments increased by 1.9 per cent during the year, driven largely by obligations to private creditors, particularly international bondholders. Between 2022 and 2025, the countries covered by the report paid approximately $436.1bn more in debt servicing than they received in new financing. The World Bank, however, noted that the trend reversed in 2025, when long-term debt flows recorded a net inflow of $45.4bn, compared with a net outflow of $118.4bn in 2024. In its foreword to the report, the World Bank’s Chief Statistician, Haishan Fu, described the situation as a troubling paradox in which developing economies were gaining access to international financing but paying more to secure it. ”Low- and middle-income countries are borrowing more, paying more, and, in many cases, leaving less for long-term development,” Fu said. He warned that rising debt-service obligations were absorbing resources needed for infrastructure, employment, education, healthcare and other development priorities. ”The objective should, therefore, not be more debt.
- It should be better financing that is affordable, transparent, sustainable, and capable of supporting investment and growth,” he said. The report also highlighted Nigeria’s return to the international bond market in 2025, when the country raised $2.3bn through a dual-tranche sovereign bond issuance. According to the World Bank, Nigeria was the third-largest issuer among Sub-Saharan African countries eligible for International Development Association (IDA) financing during the year. The $2.3bn issuance comprised a 10-year bond with an interest rate of 8.625 per cent and a 20-year bond carrying an interest rate of 9.125 per cent. The borrowing reflected Nigeria’s continued access to international capital markets, but the interest rates also illustrate the relatively high cost of raising foreign financing. The report noted that the return of developing economies to international bond markets in 2025 was accompanied by elevated borrowing costs, particularly for countries with weaker credit profiles. Across IDA-eligible countries, the average interest rate on new commitments from private creditors rose to 8.2 per cent in 2025, the highest level since the late 1980s. By comparison, the average interest rate on new commitments from official creditors remained relatively stable at 2.7 per cent between 2024 and 2025. The World Bank said the difference between the interest rates charged by private and official creditors to IDA-eligible countries had widened to 5.5 percentage points in 2025, compared with 3.4 percentage points in 2016. Although Nigeria is classified as a lower-middle-income country eligible for both IBRD and IDA financing, the report’s country profile shows that its average interest rate on new official external debt commitments in 2025 was 1.9 per cent, compared with 9.6 per cent for private creditors. The average maturity of Nigeria’s new official borrowing commitments was 25 years, with a five-year grace period, while private creditor commitments had an average maturity of 12 years and an eight-year grace period. The difference highlights the comparatively expensive nature of borrowing from private international lenders Another significant development highlighted in the report is Nigeria’s use of a relatively complex financing arrangement known as a Total Return Swap (TRS). The World Bank identified Nigeria, Angola, Argentina, Colombia and Senegal among countries that had entered into TRS arrangements since 2024. It explained that these transactions allow sovereign borrowers to obtain foreign currency liquidity by pledging government securities or other assets as collateral. According to the report, Nigeria entered into a $5bn TRS transaction in 2026 with a three-year maturity and collateralisation ratio of approximately 133 per cent. This means that Nigeria pledged domestic securities worth approximately $6.7bn as collateral for the $5bn financing. The report explained that such arrangements could provide governments with foreign currency quickly and potentially at lower short-term financing rates than conventional borrowing. However, it warned that the arrangements also carry significant collateral, margin-call, refinancing and transparency risks. It said the growing use of TRS financing raises questions about whether headline debt statistics adequately capture the full extent of governments’ financial obligations and associated risks. The World Bank noted that where a sovereign borrower receives cash upfront and is unconditionally required to repay it, the financing constitutes debt, even though the transaction may also have a derivative component. It also recommended that governments disclose the amount borrowed, maturity, collateralisation ratio, type of collateral, margin requirements and repayment obligations associated with such arrangements. The report warned that failure to provide such information could make it difficult to establish the full extent of a country’s financial exposure. Nigeria’s debt position forms part of a broader increase in external borrowing across developing economies, with several African countries recording significant increases in their debt stocks in 2025.
Key Facts:2025: Nigeria’s external debt stock increased to $145.02bn at the end of 2025, representing a 6.6 per cent rise from the previous year, according to the World Bank’s International Debt Report 2026. The report released on Thursday, provides a detailed assessment of external borrowing among low- and middle-income countries.2025: It showed.that Nigeria’s external debt has risen substantially over the past decade, increasing from $83.21bn in 2015 to $145.02bn in 2025. The latest figure represents an increase of about $61.8bn over the 10-year period, highlighting the growing scale of Nigeria’s financial obligations to foreign creditors. The World Bank report, which analysed external debt positions as of December 2025, puts Nigeria’s total external debt at $145.015bn, comprising $62.4bn in public and publicly guaranteed debt, $54.476bn in private nonguaranteed debt and $28.139bn in short-term obligations. The figures indicate that government and government-guaranteed borrowing account for less than half of Nigeria’s total external debt, while private sector borrowing without public guarantees and short-term obligations make up a substantial proportion. According to the report, public and publicly guaranteed debt refers to external obligations owed by public institutions, including the central government and state-owned enterprises, as well as private sector borrowing backed by government guarantees. Private nonguaranteed debt, on the other hand, covers long-term external obligations of private borrowers that are not guaranteed by a public institution. The report explained that external debt includes actual liabilities owed by residents of a country to non-residents, whether denominated in domestic or foreign currencies, and requires the repayment of principal, interest or both. Beyond the size of the debt stock, the World Bank report highlighted the increasing pressure of debt servicing on developing economies, with Nigeria recording a deterioration in some of its debt-service indicators in 2025. Nigeria’s external debt-to-exports ratio stood at 212 per cent in 2025, while its external debt-to-gross national income (GNI) ratio was 51 per cent. The report also put Nigeria’s debt-service-to-exports ratio at 19 per cent and debt-service-to-GNI ratio at five per cent. While the external debt-to-exports and debt-to-GNI ratios declined by 4.3 per cent and 6.6 per cent respectively from their 2024 levels, the debt-service-to-exports ratio increased by 9.6 per cent, while debt service relative to GNI rose by 6.9 per cent. The figures suggest that although Nigeria’s external debt relative to national income and export earnings improved marginally, the burden of servicing its obligations increased during the year. The report noted that debt-service payments among low- and middle-income countries had increased for five consecutive years, reaching $1.4tn in 2025. It said the payments increased by 1.9 per cent during the year, driven largely by obligations to private creditors, particularly international bondholders. Between 2022 and 2025, the countries covered by the report paid approximately $436.1bn more in debt servicing than they received in new financing. The World Bank, however, noted that the trend reversed in 2025, when long-term debt flows recorded a net inflow of $45.4bn, compared with a net outflow of $118.4bn in 2024. In its foreword to the report, the World Bank’s Chief Statistician, Haishan Fu, described the situation as a troubling paradox in which developing economies were gaining access to international financing but paying more to secure it. ”Low- and middle-income countries are borrowing more, paying more, and, in many cases, leaving less for long-term development,” Fu said. He warned that rising debt-service obligations were absorbing resources needed for infrastructure, employment, education, healthcare and other development priorities. ”The objective should, therefore, not be more debt.2025: It should be better financing that is affordable, transparent, sustainable, and capable of supporting investment and growth,” he said. The report also highlighted Nigeria’s return to the international bond market in 2025, when the country raised $2.3bn through a dual-tranche sovereign bond issuance. According to the World Bank, Nigeria was the third-largest issuer among Sub-Saharan African countries eligible for International Development Association (IDA) financing during the year. The $2.3bn issuance comprised a 10-year bond with an interest rate of 8.625 per cent and a 20-year bond carrying an interest rate of 9.125 per cent. The borrowing reflected Nigeria’s continued access to international capital markets, but the interest rates also illustrate the relatively high cost of raising foreign financing. The report noted that the return of developing economies to international bond markets in 2025 was accompanied by elevated borrowing costs, particularly for countries with weaker credit profiles. Across IDA-eligible countries, the average interest rate on new commitments from private creditors rose to 8.2 per cent in 2025, the highest level since the late 1980s. By comparison, the average interest rate on new commitments from official creditors remained relatively stable at 2.7 per cent between 2024 and 2025. The World Bank said the difference between the interest rates charged by private and official creditors to IDA-eligible countries had widened to 5.5 percentage points in 2025, compared with 3.4 percentage points in 2016. Although Nigeria is classified as a lower-middle-income country eligible for both IBRD and IDA financing, the report’s country profile shows that its average interest rate on new official external debt commitments in 2025 was 1.9 per cent, compared with 9.6 per cent for private creditors. The average maturity of Nigeria’s new official borrowing commitments was 25 years, with a five-year grace period, while private creditor commitments had an average maturity of 12 years and an eight-year grace period. The difference highlights the comparatively expensive nature of borrowing from private international lenders Another significant development highlighted in the report is Nigeria’s use of a relatively complex financing arrangement known as a Total Return Swap (TRS). The World Bank identified Nigeria, Angola, Argentina, Colombia and Senegal among countries that had entered into TRS arrangements since 2024. It explained that these transactions allow sovereign borrowers to obtain foreign currency liquidity by pledging government securities or other assets as collateral. According to the report, Nigeria entered into a $5bn TRS transaction in 2026 with a three-year maturity and collateralisation ratio of approximately 133 per cent. This means that Nigeria pledged domestic securities worth approximately $6.7bn as collateral for the $5bn financing. The report explained that such arrangements could provide governments with foreign currency quickly and potentially at lower short-term financing rates than conventional borrowing. However, it warned that the arrangements also carry significant collateral, margin-call, refinancing and transparency risks. It said the growing use of TRS financing raises questions about whether headline debt statistics adequately capture the full extent of governments’ financial obligations and associated risks. The World Bank noted that where a sovereign borrower receives cash upfront and is unconditionally required to repay it, the financing constitutes debt, even though the transaction may also have a derivative component. It also recommended that governments disclose the amount borrowed, maturity, collateralisation ratio, type of collateral, margin requirements and repayment obligations associated with such arrangements. The report warned that failure to provide such information could make it difficult to establish the full extent of a country’s financial exposure. Nigeria’s debt position forms part of a broader increase in external borrowing across developing economies, with several African countries recording significant increases in their debt stocks in 2025.₦2.5 million: UPDATE NEWS: Nigerians can now invest ₦2.5 million on premium domains and profit about ₦17-₦25 million.
Editorial Excerpt
Nigeria’s external debt stock increased to $145.02bn at the end of 2025, representing a 6.6 per cent rise from the previous year, according to the World...
Frequently Asked Questions About This Story
What is the key takeaway from this report?
Nigeria’s external debt stock increased to $145.02bn at the end of 2025, representing a 6.6 per cent rise from the previous year, according to the World Bank’s International Debt Report 2026. The report released on Thursday, provides a detailed assessment of external borrowing among low- and middle-income countries.
What additional context is highlighted in this report?
It showed.that Nigeria’s external debt has risen substantially over the past decade, increasing from $83.21bn in 2015 to $145.02bn in 2025. The latest figure represents an increase of about $61.8bn over the 10-year period, highlighting the growing scale of Nigeria’s financial obligations to foreign creditors. The World Bank report, which analysed external debt positions as of December 2025, puts Nigeria’s total external debt at $145.015bn, comprising $62.4bn in public and publicly guaranteed debt, $54.476bn in private nonguaranteed debt and $28.139bn in short-term obligations. The figures indicate that government and government-guaranteed borrowing account for less than half of Nigeria’s total external debt, while private sector borrowing without public guarantees and short-term obligations make up a substantial proportion. According to the report, public and publicly guaranteed debt refers to external obligations owed by public institutions, including the central government and state-owned enterprises, as well as private sector borrowing backed by government guarantees. Private nonguaranteed debt, on the other hand, covers long-term external obligations of private borrowers that are not guaranteed by a public institution. The report explained that external debt includes actual liabilities owed by residents of a country to non-residents, whether denominated in domestic or foreign currencies, and requires the repayment of principal, interest or both. Beyond the size of the debt stock, the World Bank report highlighted the increasing pressure of debt servicing on developing economies, with Nigeria recording a deterioration in some of its debt-service indicators in 2025. Nigeria’s external debt-to-exports ratio stood at 212 per cent in 2025, while its external debt-to-gross national income (GNI) ratio was 51 per cent. The report also put Nigeria’s debt-service-to-exports ratio at 19 per cent and debt-service-to-GNI ratio at five per cent. While the external debt-to-exports and debt-to-GNI ratios declined by 4.3 per cent and 6.6 per cent respectively from their 2024 levels, the debt-service-to-exports ratio increased by 9.6 per cent, while debt service relative to GNI rose by 6.9 per cent. The figures suggest that although Nigeria’s external debt relative to national income and export earnings improved marginally, the burden of servicing its obligations increased during the year. The report noted that debt-service payments among low- and middle-income countries had increased for five consecutive years, reaching $1.4tn in 2025. It said the payments increased by 1.9 per cent during the year, driven largely by obligations to private creditors, particularly international bondholders. Between 2022 and 2025, the countries covered by the report paid approximately $436.1bn more in debt servicing than they received in new financing. The World Bank, however, noted that the trend reversed in 2025, when long-term debt flows recorded a net inflow of $45.4bn, compared with a net outflow of $118.4bn in 2024. In its foreword to the report, the World Bank’s Chief Statistician, Haishan Fu, described the situation as a troubling paradox in which developing economies were gaining access to international financing but paying more to secure it. ”Low- and middle-income countries are borrowing more, paying more, and, in many cases, leaving less for long-term development,” Fu said. He warned that rising debt-service obligations were absorbing resources needed for infrastructure, employment, education, healthcare and other development priorities. ”The objective should, therefore, not be more debt.
What timeline or key figures were confirmed?
Nigeria’s external debt stock increased to $145.02bn at the end of 2025, representing a 6.6 per cent rise from the previous year, according to the World Bank’s International Debt Report 2026. The report released on Thursday, provides a detailed assessment of external borrowing among low- and middle-income countries.
