Nigeria’s Debt Hits N152.4tn as World Bank Tops Creditors with $18bn Exposure

Nigeria’s public debt profile has continued its upward climb, hitting N152.40 trillion as of June 30, 2025, according to the latest figures released by the Debt Management Office (DMO).

Despite fiscal reforms and revenue drive initiatives, the report shows that the World Bank has emerged as Nigeria’s largest single creditor with an exposure of $18.04 billion, underscoring the country’s deepening dependence on external borrowing.

The total public debt rose by N3.01 trillion from N149.39 trillion recorded at the end of March 2025. In dollar terms, the nation’s debt stock increased from $97.24 billion to $99.66 billion, representing a 2.49 per cent rise within three months.

According to the DMO, multilateral institutions now hold nearly half of Nigeria’s total external debt — about $23.19 billion, or 49.4 per cent of the total.

The World Bank, through its lending arm, the International Development Association (IDA), leads the list, followed by the African Development Bank and other regional institutions.

Bilateral debts were estimated at $6.20 billion, with China’s Export-Import Bank accounting for $4.91 billion, while France, Japan, India, and Germany make up the rest.

Commercial loans, largely made up of Eurobonds, totalled $17.32 billion, representing 36.9 per cent of Nigeria’s total external obligations. An additional $268.9 million is owed through syndicated loans and credit lines from commercial banks.

On the domestic front, Nigeria’s debt stood at N80.55 trillion by mid-2025, up from N78.76 trillion in the first quarter. Federal Government bonds dominated this category, accounting for N60.65 trillion, or 79.2 per cent of domestic obligations.

This includes N36.52 trillion in naira-denominated bonds, N22.7 trillion in securitised Ways and Means advances — borrowings from the Central Bank of Nigeria (CBN) — and N1.40 trillion in dollar-denominated bonds.

Analysts have expressed concern that the increasing securitisation of CBN advances points to persistent fiscal pressure, even as the government turns to the bond market to plug budget deficits.

The DMO explained that the external component of Nigeria’s debt was converted using an exchange rate of N1,529.21/$, noting that the weaker naira contributed significantly to the higher domestic valuation of foreign loans.

Out of the N152.40 trillion, the Federal Government alone accounts for N141.08 trillion, representing 92.6 per cent of the total debt stock.

While Nigeria’s debt-to-GDP ratio remains within international thresholds, experts have warned that the rate of accumulation and rising servicing costs pose long-term risks to the economy.

Speaking on the development, economist and senior partner at SPM Professionals, Mr. Paul Alaje, described the government’s borrowing pattern as unsustainable.

“The challenge is that we have not developed the capacity to block revenue leakages,” he said. “Nigeria is rich in mineral resources, yet our mining sector remains underdeveloped. Until we harness that potential, crude oil alone cannot sustain the economy.”

He added that the country could raise between N7 trillion and N8 trillion from the telecommunications sector alone if leakages were addressed.

Alaje stressed the need for the government to prioritise revenue generation, fiscal discipline, and resource diversification, warning that the current trajectory could undermine Nigeria’s long-term fiscal stability.