Nigeria's External Debt Grows to $145 Billion in 2025 - World Bank

Nigeria’s external debt rose to $145.02 billion in 2025. This is a 6.6 percent increase from last year, according to the World Bank.

More than half of this debt comes from private non-guaranteed loans and short-term obligations. The World Bank’s International Debt Report 2026 reveals that Nigeria’s external debt grew from $83.21 billion in 2015 to $145.015 billion in 2025. This is a 74.3 percent increase over ten years.

From the total debt, public and publicly guaranteed loans make up $62.4 billion. Private non-guaranteed debt is $54.476 billion, while short-term external debt is $28.139 billion. This means Nigeria's external debt includes not just government borrowing but also loans taken by private companies without government backing and short-term debts.

Debt Transparency Issues

The World Bank report warns that rising debt and repayment obligations are stressing developing countries. This comes even as international capital markets are opening up for some borrowers.

It states that external debt in low- and middle-income countries increased by 5.5 percent to a record $9.4 trillion in 2025. This marks the largest annual rise in four years. The report highlights that the return to international markets has been uneven. The poorest countries are facing borrowing costs not seen since the late 1980s.

Haishan Fu, the Chief Statistician of the World Bank Group, noted that the total debt-service burden for low- and middle-income countries has risen for the fifth year in a row in 2025. Fu said this rising debt burden limits resources for key areas like infrastructure, jobs, education, and healthcare.

"Knowing how much countries owe, to whom, and on what terms has never been more important. Without reliable information, governments cannot manage debt well, creditors cannot assess risks accurately, and debt restructurings can become harder," Ms. Fu said.

She added that transparency is a shared responsibility. Borrowers need to keep detailed debt records. Creditors should share information about their loans. International bodies must enhance reporting standards and debt management systems.

"The message of this year’s report is clear: access to finance is not enough. We must know the debt, understand its terms, and make sure that the financing developing countries receive helps them grow, withstand shocks, and improve lives," she said.

Breakdown of Nigeria's Debt

A closer look at Nigeria’s $62.4 billion in public and publicly guaranteed debt shows that multilateral creditors hold $31.365 billion. Bilateral creditors account for $6.683 billion, while private creditors have $24.352 billion.

The World Bank’s International Development Association (IDA) makes up $18.533 billion of the multilateral debt. The International Monetary Fund credit and Special Drawing Rights allocations stand at $5.516 billion. Other multilateral creditors account for $7.315 billion.

China is Nigeria’s largest bilateral creditor, with $5.672 billion. France follows with $774 million, while other bilateral creditors total $237 million.

Debt Ratios

The report shows Nigeria’s external debt-to-exports ratio at 212 percent in 2025. External debt as a part of Gross National Income is 51 percent. Debt service takes up 19 percent of exports and five percent of GNI for the year.

The average term for Nigeria’s new loans from official creditors is 25 years, with a five-year grace period and an interest rate of 1.9 percent. New loans from private creditors average a 12-year term, an eight-year grace period, and an interest rate of 9.6 percent.

The report also notes Nigeria’s return to international capital markets. The country, the third-largest issuer in Sub-Saharan Africa, raised $2.3 billion through a dual-tranche international bond issue in 2025. One tranche has a 10-year maturity and an interest rate of 8.625 percent, while the second has a 20-year maturity and an interest rate of 9.125 percent.

Additionally, Nigeria entered a $5 billion Total Return Swap transaction in 2026, with a three-year maturity and collateralization of about 133 percent. This is around $6.7 billion in domestic securities.