Nigeria’s external debt hits $51.9bn as Eurobonds, World Bank

Nigeria’s external debt rose to $51.90 billion as of March 2026, with Eurobond investors and the World Bank’s International Development Association (IDA) accounting for more than 71 per cent of the total, highlighting the country’s continued dependence on international capital markets and multilateral lenders.

Latest Debt Management Office (DMO) data reviewed has showed that external debt increased marginally from $51.86 billion in December 2025, but rose significantly from $45.98 billion a year earlier, representing a 12.90 per cent year-on-year increase, equivalent to about $5.93 billion in additional external obligations.

The debt remains highly concentrated, with the top 10 creditor exposures accounting for about 97.2 per cent of the total external debt stock.

Nigeria’s largest external exposure was its $18.55 billion Eurobond portfolio, representing 35.73 per cent of total external debt. Eurobond obligations increased 7.1 per cent year-on-year, although they were unchanged from December 2025.

The second-largest exposure was the World Bank’s IDA, with $18.39 billion, equivalent to 35.43 per cent of total external debt. IDA debt declined 0.63 per cent quarter-on-quarter but increased 8.23 per cent year-on-year.

Together, Eurobond investors and IDA therefore accounted for about $36.94 billion, or 71.17 per cent of Nigeria’s external debt stock.

Nigeria also owed $4.95 billion to Exim Bank of China, representing 9.54 per cent of the total, while the African Development Bank accounted for $2.19 billion, or 4.23 per cent.

First Abu Dhabi Bank emerged as another major exposure at $1.87 billion, representing 3.61 per cent of total external debt. The exposure did not appear in the previous March or December figures and formed part of a broader change in how syndicated borrowing was classified.

The data also showed Nigeria owed $1.43 billion to the International Bank for Reconstruction and Development, $1.01 billion to the African Development Fund, $902.17 million to Agence Française de Développement, $637.82 million to Afreximbank and $507.52 million to China Development Bank.

The dominance of multilateral lenders provides Nigeria access to relatively cheaper, longer-term financing, particularly through IDA, which supports sectors including healthcare, education, agriculture, power and public-sector reforms.

Eurobond borrowing, however, carries greater refinancing and foreign-exchange risks because repayments are denominated in foreign currency and generally attract higher interest costs.

The latest debt profile therefore underscores the importance of deploying borrowed funds into productive investments capable of raising government revenue, increasing foreign exchange earnings and strengthening economic growth.