Nigeria’s external debt has climbed by about $11.4 billion since President Bola Ahmed Tinubu assumed office, reflecting a sharp increase in the Federal Government’s reliance on external financing amid ongoing economic reforms. Data reviewed from debt records show that Nigeria’s external debt stood at approximately $54.5 billion as of June 2026, up from about $43.1 billion when Tinubu took office. The rise has come alongside a significant increase in domestic borrowing, with domestic debt growing from about N59.1 trillion to N91.5 trillion.
A major driver of the increase in external debt has been borrowing from multilateral institutions, particularly the World Bank. Nigeria’s debt to the World Bank rose from about $15.4 billion to $20.7 billion during the period, following several financing approvals for economic reforms, education, resilience and other development programmes. Major facilities included the RESET and ARMOR financing approved in 2024, alongside funding for the HOPE and SPIN programmes and additional financing approved in 2025. The Federal Government also moved to secure another $1.25 billion World Bank facility in 2026 to support financing, digital services, electricity and reforms across key sectors.
Nigeria’s return to the international commercial debt market has also added to the external debt burden. The country raised $2.2 billion through a Eurobond in December 2024, followed by another $2.35 billion issuance in November 2025. In addition, Nigeria secured a $1.8 billion syndicated loan from First Abu Dhabi Bank and accessed $1.5 billion from a broader $5 billion derivatives financing arrangement in June 2026. The financing structure has attracted scrutiny, with the IMF raising concerns about the complexity and transparency of such transactions, while Fitch highlighted potential liquidity, transparency and creditor-recovery risks. The Federal Government, however, has maintained that no oil revenues or strategic national assets were pledged as collateral.
The pressure on Nigeria’s debt position is also reflected in the 2026 budget, which provides for record spending of N68.32 trillion and a projected fiscal deficit of about N31.4 trillion. Planned borrowing was increased to N29.20 trillion, while the government also targeted about N2 trillion in multilateral and bilateral project-linked loans. Lawmakers additionally approved $6 billion in external borrowing, including the First Abu Dhabi Bank facility and financing from UK Export Finance for port projects. While the government has argued that external financing can reduce pressure on the domestic financial market, domestic debt has continued to expand through instruments such as FGN bonds and Treasury Bills.
Nigeria’s overall public debt stock subsequently reached N166.79 trillion as of June 30, 2026, up from N159.35 trillion at the end of March. Domestic debt accounted for N91.59 trillion, while Federal Government external debt stood at N65.77 trillion. The latest figures show that the Federal Government remains the dominant borrower, accounting for about N152.77 trillion of total public debt, compared with approximately N14.01 trillion owed by states and the Federal Capital Territory. The rising figures put renewed focus on how Nigeria balances borrowing with economic growth, revenue generation and its ability to meet future debt obligations.
source: nairametrics