# Nigeria’s External Debt Reaches $145 Billion in 2025 World Bank report highlights significant debt growth and rising servicing pressures for Nigeria. - **Source:** [Premium Times Nigeria](https://www.premiumtimesng.com) - **Published:** 2026-11-07 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/e9672eaf-6ccd-4897-9a0a-84ffb1817ea6 ## Debt Growth Trends Nigeria’s total external debt stock climbed to $145.02 billion in 2025, marking a 6.6 percent increase from the previous year. Over the last decade, the country’s external obligations have surged by 74.3 percent, rising from $83.21 billion in 2015. This upward trajectory reflects broader challenges facing many developing economies globally. ## Composition of Debt The debt profile is split between public and private sectors. Public and publicly guaranteed debt accounts for $62.4 billion, while private non-guaranteed debt totals $54.476 billion. Additionally, short-term external debt contributes $28.139 billion to the total. This structure indicates that Nigeria’s financial exposure extends significantly beyond direct government borrowing activities. ## Multilateral and Bilateral Creditors Public debt is heavily influenced by multilateral creditors, who hold $31.365 billion of the total. Within this, the International Development Association accounts for $18.533 billion. Bilateral debt stands at $6.683 billion, with China remaining the largest bilateral creditor at $5.672 billion, followed by France with $774 million in outstanding loans. ## Market Access Costs Nigeria returned to international capital markets in 2025, raising $2.3 billion through a dual-tranche bond issue. The 10-year tranche carries an 8.625 percent interest rate, while the 20-year tranche is priced at 9.125 percent. These rates reflect the current borrowing environment for Sub-Saharan African issuers seeking liquidity in global markets. ## Debt Servicing Pressures Debt servicing now consumes 19 percent of Nigeria’s exports and five percent of its Gross National Income. The World Bank warns that these rising obligations reduce available resources for critical sectors like healthcare, education, and infrastructure. This trend has persisted for five consecutive years, straining the nation's fiscal development capacity. ## Transparency and Management The World Bank emphasizes that reliable debt data is essential for effective management and risk assessment. Chief Statistician Haishan Fu noted that without transparent records, debt restructuring becomes increasingly difficult. The report calls for borrowers and creditors to maintain comprehensive, timely, and reconciled information to ensure long-term economic stability and growth. ## Private Sector Obligations New commitments from private creditors in 2025 carry an average maturity of 12 years with an eight-year grace period and a 9.6 percent interest rate. In contrast, official creditor commitments offer more favorable terms, averaging 25 years with a 1.9 percent interest rate. These differences highlight the varying costs of capital. ## Future Financial Outlook Nigeria entered a $5 billion Total Return Swap transaction in 2026, collateralized by $6.7 billion in domestic securities. As external debt-to-exports ratios reach 212 percent, the country faces a complex fiscal landscape. Future economic resilience will depend on managing these diverse debt instruments while balancing development needs against high servicing costs. ## Sources covering this story - https://www.premiumtimesng.com/business/business-news/923441-nigerias-external-debt-up-6-6-to-145bn-in-2025-world-bank.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._