Nigeria External Debt Hits 145 Billion Dollars in 2025
The World Bank reports Nigeria's total external debt rose 6.6% to 145 billion dollars in 2025, increasing debt-service costs and limiting development resources.
Nigeria's total external debt reached 145.02 billion dollars by the end of 2025, representing a 6.6% increase from the previous year and a 74.3% rise over the last decade. According to the World Bank Group in its International Debt Report 2026, the debt comprises 62.4 billion dollars in public and publicly guaranteed debt, 54.476 billion dollars in private non-guaranteed debt, and 28.139 billion dollars in short-term obligations.
China is the largest bilateral creditor for Nigeria, holding 5.672 billion dollars. To manage its finances, the Government of Nigeria raised 2.3 billion dollars through a dual-tranche international bond issue in 2025 and entered a 5 billion dollar Total Return Swap transaction in 2026. While the debt-to-gross national income ratio improved to 51.5% from 55.1%, the cost of servicing the debt rose, consuming 19.3% of export earnings in 2025.
This trend is part of a global surge in external debt for low- and middle-income countries, which hit a record 9.4 trillion dollars in 2025. World Bank Chief Statistician Haishan Fu warned that rising debt-service burdens, which have increased for five consecutive years, are reducing the resources available for healthcare, education, and infrastructure in developing economies. Economists suggest these rising costs may put downward pressure on the naira by reducing the export income available for imports.
