Nigeria’s external debt has risen by $11.36 billion since President Bola Tinubu took office in May 2023, reaching $54.52 billion as of June 30, 2026, according to figures from the Debt Management Office (DMO). This marks a roughly 26% increase from the $43.16 billion recorded in June 2023, driven by increased borrowing from multilateral lenders, international bond markets, and commercial creditors.
World Bank Holds Largest Share of Nigeria’s Debt
The World Bank Group remains Nigeria’s biggest multilateral creditor, with $20.73 billion outstanding as of June 2026. This amount is split between $19.12 billion owed to the International Development Association (IDA) and $1.61 billion to the International Bank for Reconstruction and Development (IBRD). Since 2024, Nigeria has secured several World Bank financing packages to fund economic reforms, social protection, infrastructure, agriculture, and education programmes, according to Nairametrics.
Other multilateral creditors include the African Development Bank Group, the Islamic Development Bank, and the International Fund for Agricultural Development. These institutions have provided funding as part of Nigeria’s broader strategy to finance development projects and stabilize the economy.
Eurobonds and Commercial Loans Add Pressure
Commercial borrowing constitutes a significant portion of Nigeria’s external obligations. The DMO placed outstanding Eurobonds at $18.55 billion as of June 2026, making them one of the largest single components of the external debt stock. Nigeria also holds $1.87 billion in syndicated financing from First Abu Dhabi Bank and $1.5 billion under a Total Return Swap arrangement.
The $5 billion financing deal has drawn scrutiny from international institutions over concerns about the complexity and transparency of derivatives-based sovereign borrowing. However, the Federal Government has maintained that no crude oil revenues or strategic national assets were pledged as collateral for the facility.
Total Public Debt Crosses N166 Trillion
The rise in external borrowing has run alongside an expansion in domestic debt. The DMO said total public debt stood at N166.79 trillion at the end of June 2026, comprising N91.59 trillion in domestic debt and N75.20 trillion in external debt. The federal government accounted for N153.77 trillion of that figure, with the remaining balance attributed to state governments and the Federal Capital Territory.
Nigeria’s 2026 budget projects a deficit of about N31.46 trillion, with borrowing expected to cover much of the shortfall. The government has said the borrowing is necessary to fund infrastructure and development spending, while its broader reform agenda aims to boost revenue and restore economic stability over time.
Lagos Ranked Nigeria’s Most Indebted State
Earlier, Legit.ng reported that Nigeria’s 36 states and the Federal Capital Territory (FCT) owed a combined domestic debt of N4.59 trillion as of June 30, 2026. The figure accounts for 2.75% of Nigeria’s total public debt of N166.79 trillion as of the same date. The federal government held the bulk of the country’s domestic debt at N87.00 trillion, while states and the FCT accounted for the remaining N4.59 trillion of the N91.59 trillion total domestic debt.
The increasing debt levels continue to shape Nigeria’s fiscal landscape, with borrowing expected to play a key role in financing the 2026 budget deficit and ongoing development projects.
