Nigeria's external debt rises 6.6% to $145bn in 2025, World Bank reports

Nigeria’s external debt grew by 6.6% in 2025, reaching $145.015 billion, according to a World Bank release reported by Premium Times on 7 November 2026. The figure marks a continuation of a decade‑long upward trend, with debt standing at $83.21 billion in 2015, a rise of 74.3% over ten years.

The World Bank’s data indicates that the increase in external obligations reflects ongoing fiscal pressures on the Nigerian economy. The latest rise follows a pattern of annual debt growth, underscoring the challenges faced by the government in managing external borrowing.

Background

External debt in Nigeria has been on a steady climb since the mid‑2010s. In 2015, the country’s external liabilities were recorded at $83.21 billion. Over the subsequent ten years, the cumulative increase reached $61.805 billion, bringing the total to $145.015 billion by the end of 2025. The World Bank attributes the growth to a combination of factors, including financing of infrastructure projects, budget deficits, and the need to support foreign exchange reserves.

The data released by the World Bank is part of its regular monitoring of sovereign debt levels, which informs both domestic policy decisions and international investors. Premium Times highlighted the figures in a special report, noting the significance of the 6.6% year‑on‑year rise for the 2025 fiscal year.

Why it matters

The surge in external debt has implications for several stakeholder groups. For the Nigerian government, higher debt service obligations may constrain fiscal space, potentially affecting public spending on health, education, and infrastructure. Credit rating agencies monitor such trends, and a continued rise could influence Nigeria’s sovereign credit rating, impacting borrowing costs.

For investors and lenders, the expanding debt stock signals increased risk exposure. The World Bank’s figures serve as a benchmark for assessing the country’s repayment capacity and the sustainability of its debt profile. Domestic businesses may also feel indirect effects through higher interest rates or reduced access to financing if the government’s fiscal position weakens.

Internationally, Nigeria’s debt trajectory is of interest to multilateral institutions and donor countries that engage in development financing. The World Bank’s reporting provides a transparent basis for dialogue on debt management strategies and potential restructuring options.

What happens next

The World Bank’s release does not specify immediate policy actions, but the data suggests that Nigerian authorities will need to address debt sustainability in upcoming fiscal planning cycles. Analysts anticipate that the government may consider measures such as debt restructuring, enhanced revenue mobilisation, or adjustments to borrowing strategies to curb further escalation.

No specific dates for policy decisions were mentioned in the source material, and the report does not detail any forthcoming negotiations with creditors. However, the continued monitoring of external debt levels by the World Bank implies that future updates will track the effectiveness of any remedial measures taken by the Nigerian government.