Nigeria's external debt stock has increased significantly since President Bola Tinubu assumed office in 2023. The debt has risen from approximately $43.1 billion to $54.5 billion as of June 2026, representing an increase of about $11.4 billion. This surge is attributed to the federal government's preference for foreign borrowing to finance economic reforms, budget deficits, and development programs.
The rise in external debt is largely driven by increased borrowing from multilateral lenders, particularly the World Bank, as well as Eurobond issuances and syndicated financing. Nigeria's debt to the World Bank has increased from approximately $15.4 billion to $20.7 billion during this period. Major World Bank financing approved under the Tinubu administration includes $2.25 billion for economic reforms in June 2024, $1.57 billion for the HOPE and SPIN programs in September 2024, and $1.08 billion for education and resilience programs in March 2025.
The federal government is also seeking a fresh $1.25 billion World Bank loan to support access to finance, digital services, and electricity, while backing reforms in tax, trade, and agriculture. Additionally, Nigeria returned to the international capital market in December 2024 with a $2.2 billion Eurobond, comprising $700 million due in 2031 and $1.5 billion due in 2034. This was followed by another $2.35 billion Eurobond in November 2025, taking the total raised through the two issuances to $4.55 billion.
The country has also secured a $1.8 billion syndicated loan from First Abu Dhabi Bank, while a $5 billion derivatives financing arrangement was agreed in 2026, of which $1.5 billion had been drawn by June. However, the federal government has defended the financing arrangement, saying no oil revenues or strategic national assets were pledged as collateral. Despite this, the International Monetary Fund has raised concerns about the complexity and transparency of derivatives-based financing.
Nigeria's domestic debt has also increased significantly, from approximately N59.1 trillion to N91.5 trillion during the period. The latest Debt Management Office figures show that Nigeria's total public debt stood at N166.79 trillion as of June 30, 2026, comprising N91.59 trillion in domestic debt and N75.20 trillion in external debt. The federal government accounted for the bulk of the debt, with its total obligations standing at approximately N152.77 trillion.
States and the Federal Capital Territory accounted for approximately N14.01 trillion of the debt. Nigeria's 36 states and the Federal Capital Territory increased their domestic debt to N4.59 trillion as of June 2026, up from N4.52 trillion recorded in March. Lagos State remained the largest debtor, with domestic debt of N1.20 trillion, representing 26.03 percent of the total debt owed by the states and FCT.
Analysts have continued to stress the need for states to ensure that borrowed funds are channeled into projects capable of improving economic activity and generating enough revenue to support debt repayment. The growing reliance of several state governments on domestic borrowing to finance infrastructure and other government programs has also raised concerns.
Key points
- Nigeria's external debt has increased by $11.4 billion since President Bola Tinubu took office in 2023.
- The country's domestic debt has also risen to N91.5 trillion.
- States' domestic liabilities have swelled to N4.59 trillion, with Lagos and Delta leading.
