Nigeria's Federal Government carried N7.84 trillion in outstanding guarantees and contingent liabilities as of 30 June 2026, according to a Debt Management Office (DMO) report. Collateral tied to a $1.5 billion Total Return Swap represented the single largest item at N2.74 trillion, or 34.99 percent of the total, highlighting the fiscal weight of derivative-linked obligations within the sovereign balance sheet.
The DMO report spans exposures across the power sector, financial institutions, infrastructure projects and pension obligations. Under the $5 billion swap arrangement with First Abu Dhabi Bank, the government drew down $1.5 billion and issued Federal Government bonds maturing in May 2032 with a 16.9556 percent coupon as collateral for the amount drawn.
Power-sector contingent liabilities arising from Put-Call Option Agreements (PCOAs) stood at N1.88 trillion, representing 23.93 percent of the total. The Bank of Industry guarantee amounted to N1.18 trillion, or 15.04 percent, covering its €750 million Eurobond, while the guarantee for Lekki Port LFTZ Enterprise reached N804.96 billion, or 10.27 percent, for the Lekki Deep Sea Port project.
The report also listed:
- N501.02 billion under the Nigeria Bulk Electricity Trading (NBET) Plc power-sector bond guarantee - N374.88 billion in pension arrears for ministries, departments and agencies - N329.80 billion under Partial Risk Guarantees (PRGs) for power projects, representing 4.21 percent of the total - N25.35 billion for the Nigeria Mortgage Refinance Company and N5.24 billion for the Federal Mortgage Bank of Nigeria
The PCOA exposures relate to the Azura-Edo Independent Power Project, Calabar National Integrated Power Project, Afrinergia Power Limited and CT Cosmos, with NBET supplying the underlying data. The NBET bond guarantee was issued under the first series of its N4 trillion Power Sector Bond Issuance Programme, a special purpose vehicle established to settle debts owed to electricity generation companies.
For the Nigeria Mortgage Refinance Company, the DMO said N29 billion had been utilised from a N440 billion guarantee facility that supports long-term capital-market notes used to refinance or purchase mortgages from eligible lenders.
