Nigeria’s external debt stock rose to $145.02 billion by the end of 2025—a 6.6% year-on-year increase—as the World Bank warned that high borrowing costs and mounting debt-service obligations are straining developing economies.
According to the World Bank’s International Debt Report 2026, the figure reflects a nearly $61.8 billion surge from the $83.21 billion recorded in 2015, highlighting a substantial expansion in Nigeria’s foreign debt over the past decade.
The report, released on Thursday, details Nigeria’s total external debt stock as of December 2025 at $145.015 billion, comprising $62.4 billion in public and publicly guaranteed debt, $54.476 billion in private nonguaranteed debt, and $28.139 billion in short-term obligations.
The breakdown indicates that public and publicly guaranteed borrowing accounts for less than half of the nation’s external debt stock, with the remainder comprising private sector debt without state guarantees and short-term liabilities.
According to the World Bank, public and publicly guaranteed debt encompasses external liabilities incurred by government institutions and public entities, as well as private sector borrowing backed by state guarantees.
Conversely, obligations contracted by private entity borrowers without government backing are classified as private nonguaranteed debt.
The breakdown shows that public and publicly guaranteed obligations account for less than half of Nigeria’s total foreign debt, with private sector debt lacking government backing and short-term liabilities comprising the remainder.
The World Bank defines public and publicly guaranteed debt as external liabilities incurred by government bodies and public entities, alongside private sector loans secured through state guarantees.
In contrast, private nonguaranteed debt covers external financial obligations undertaken by private entities without government backing.
According to the World Bank, debt-service payments in low- and middle-income nations reached $1.4 trillion in 2025, marking the fifth consecutive year of increases.
Backstory
Nigeria’s external debt has grown significantly over the past decade, rising from $83.2 billion in 2015 to $145 billion in 2025, according to the World Bank.
The increase comes amid years of government borrowing to finance infrastructure, budget deficits and other economic obligations. However, rising debt-servicing costs have become a major concern.
In 2024, Nigeria also faced mounting pressure from foreign debt repayments as the naira weakened and foreign exchange earnings came under strain.
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