Nigeria's external debt stock has climbed by $11.4 billion since President Bola Tinubu assumed office, reaching about $54.5 billion as of June 2026 from about $43.1 billion at the start of his administration.
The rise reflects a combination of commercial borrowing, greater reliance on multilateral loans and, more recently, syndicated and derivatives-based financing. Domestic debt also surged from about N59.1 trillion to roughly N91.5 trillion, driven partly by the securitisation of Ways and Means advances and increased Treasury Bills issuances.
World Bank exposure was a key driver. Nigeria's obligations to the lender rose from $15.4 billion to about $20.7 billion during the period. Major approvals included the $2.25 billion RESET and ARMOR reform financing in June 2024, $1.57 billion for the HOPE and SPIN programmes in September 2024, and $1.08 billion for education and resilience programmes in March 2025. In 2026, the Federal Government began discussions for a further $1.25 billion loan to expand access to finance, digital services and electricity while supporting tax, trade and agriculture reforms.
Eurobond issuance also added to the stock. A $2.2 billion dual-tranche issue in December 2024 comprised $700 million at 9.625% due in 2031 and $1.5 billion at 10.375% due in 2034. A further $2.35 billion dual-tranche issue in November 2025 split into $1.25 billion at 8.63% due in 2036 and $1.10 billion at 9.13% due in 2046. Separately, Nigeria secured a $1.8 billion syndicated loan from First Abu Dhabi Bank, and in 2026 agreed a $5 billion derivatives financing arrangement from which it drew $1.5 billion in June 2026.
The IMF warned that derivatives-based financing is "often complex and lack transparency," while Fitch flagged transparency, liquidity and creditor-recovery risks around structures such as Total Return Swaps and repo transactions. The Federal Government maintained that no oil revenues or strategic national assets were pledged as collateral.
The 2026 Appropriation Bill, signed earlier in the year, set total expenditure at N68.32 trillion with a deficit of about N31.4 trillion. Planned borrowing rose to N29.20 trillion, with a further N2 trillion targeted through multilateral and bilateral project-tied loans. Tinubu said the expanded borrowing plan would reduce pressure on the domestic financial market, even as domestic debt increased to about N91.5 trillion. Lawmakers approved $6 billion in external loans, including the $5 billion First Abu Dhabi Bank facility and about $1 billion from UK Export Finance for two port projects.
