Fresh data reveals how Nigeria’s $51.86bn foreign debt Is distributed

Nigeria increased its borrowing from foreign lenders in 2025 as the Federal Government continued efforts to fund public projects, close budget deficits, support economic reforms, improve infrastructure, and manage economic pressures affecting the country.

According to figures from the Debt Management Office (DMO) reviewed by Nairametrics Research, Nigeria’s total external debt rose significantly during the year.

By December 2025, Nigeria’s total external debt stood at $51.86 billion, showing a 13.27% increase compared to the $45.78 billion recorded in December 2024.

The figures also showed growth within a short period. Between September and December 2025, external debt increased by 7%, rising from $48.46 billion to $51.86 billion. This increase suggests that Nigeria continued taking new loans while also experiencing changes in debt values.

What the figures show

The data revealed that Nigeria’s external debt is heavily concentrated among a small group of international lenders and investors.

The country’s biggest creditors include:

Eurobond investors – international investors who buy Nigerian government bonds issued in foreign currencies.

International Development Association (IDA) – a lending arm of the World Bank that provides financial support to developing countries.

African Development Bank (AfDB) – a major regional lender supporting development across Africa.

International Bank for Reconstruction and Development (IBRD) – another World Bank institution that provides development financing.

Together, these major lenders dominate Nigeria’s foreign borrowing profile.

According to the report, the top 10 creditors account for more than 98% of Nigeria’s total external debt, meaning Nigeria depends largely on a limited number of international financing sources.

Even more notably, the two largest creditors  Eurobond investors and IDA  account for 71.5% of the country’s total foreign debt exposure, showing that most of Nigeria’s obligations are concentrated in these funding channels.

Debt by lender groups

The report grouped Nigeria’s creditors into categories.

Multilateral lenders

Multilateral institutions remained Nigeria’s largest source of external financing.

Loans from institutions such as the World Bank Group and the African Development Bank Group increased to $23.85 billion in 2025, accounting for approximately 45.99% of Nigeria’s total external debt stock.

Nigeria’s debt owed specifically to World Bank institutions exceeded $19.89 billion, strengthening the World Bank’s position as one of Nigeria’s most important development partners.

These institutions usually support sectors such as:

Roads and transport

Electricity and energy

Agriculture

Education

Health services

Economic and social development programmes

Bilateral lenders

Bilateral loans refer to loans received directly from foreign governments or government-backed agencies.

Nigeria’s total exposure to bilateral creditors stood at $6.72 billion, representing 12.97% of total external debt.

Syndicated project loans

One of the fastest-growing debt categories was syndicated loans.

These are loans provided by a group of banks or financial institutions for large projects.

This category increased sharply by 80.72% quarter-on-quarter, rising from $1.39 billion in September 2025 to $2.51 billion in December 2025.

African Development Bank (AfDB) contribution

Among Nigeria’s largest individual creditors is the African Development Bank (AfDB).

Nigeria’s debt to AfDB rose to $2.18 billion in December 2025, compared to $2.10 billion in December 2024.

This represented:

A 3.70% increase year-on-year

A 1.20% increase quarter-on-quarter

AfDB loans made up about 4.2% of Nigeria’s total external debt portfolio.

The bank continues to support major projects in Nigeria, especially in transportation, power generation, agriculture, industrial growth, and infrastructure expansion.

Overall, the figures show that Nigeria continues to rely strongly on foreign borrowing to finance development and manage public finances, while international lenders remain important to sustaining government spending and economic programmes.

Source: Nairametrics