The World Bank’s International Debt Report 2025 has highlighted Sub-Saharan Africa as the only region where debt burdens kept climbing through 2024 despite weak economic expansion, calling for urgent fiscal tightening and export variety to avoid deeper crisis.
Nigeria’s Debt Climbs to N152.39 Trillion
Nigeria’s public debt hit N152.39 trillion ($99.65 billion) in Q2 2025, up 2.01% from N149.38 trillion the previous quarter. The government plans to borrow another N17.89 trillion in 2026 to cover deficits.
Sub-Saharan Africa Stands Out
Unlike other global regions that stabilised post-COVID, SSA saw external debt grow even as GDP lagged. Rising servicing costs are squeezing budgets for health, education and infrastructure, while weaker governance heightens risks like food insecurity.
Expensive Borrowing Persists
Nigeria tapped international markets with $2.2 billion in Eurobonds last year at yields up to 10.375% — levels not seen since 2008. The World Bank forecasts an 87.5% jump in principal repayments for low-income countries by 2026, creating a potential “repayment cliff.”
Nigeria Among Top World Bank Borrowers
Despite a 2024 current account surplus, Nigeria remains high-risk alongside Kenya and Zambia. It received record net flows from the World Bank in 2024, part of $36 billion to major borrowers including Bangladesh and Ukraine.
The report stresses that lasting relief depends on domestic discipline and moving beyond oil reliance.
Nigeria Hit by Nationwide Blackout After Grid Collapses to 139MW
