Nigeria’s external debt rises $11.4 billion under Tinubu to $54.5 billion

Nigeria’s external debt has risen by $11.4 billion in the last three years under President Bola Ahmed Tinubu, highlighting the increase in borrowing that has accompanied his administration’s economic reforms.

Nigeria’s total external debt stood at about $54.5 billion as of June 2026, compared with about $43.1 billion when Tinubu assumed office. The increase has been driven by a combination of commercial borrowing, reliance on multilateral loans and, more recently, syndicated financing. Domestic debt has also surged from about ₦59.1 trillion to about ₦91.5 trillion, driven partly by the securitisation of Ways and Means advances and increased Treasury Bills issuances.

One of the largest increases in Nigeria’s external borrowing came from loans obtained from the World Bank. Nigeria’s debt to the World Bank rose from $15.4 billion to about $20.7 billion during the period. Kanyi Daily reports that the first major increase occurred in June 2024 when Nigeria obtained $1.5 billion in Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing. Large policy-based financing approvals under the Tinubu administration included the $2.25 billion RESET and ARMOR reform financing approved in June 2024. Another $1.57 billion was approved in September 2024 for the HOPE and SPIN programmes. In March 2025, the World Bank approved another $1.08 billion for education and resilience programmes. In 2026, the Federal Government engaged the World Bank for a fresh $1.25 billion loan under a proposed programme aimed at expanding access to finance, digital services and electricity.

Nigeria’s Eurobond debt also increased as the country returned to the international commercial debt market. The first major increase occurred in December 2024 following a $2.2 billion dual-tranche Eurobond issuance comprising $700 million at 9.625% due in 2031 and $1.5 billion at 10.375% due in 2034. In November 2025, another $2.35 billion dual-tranche issuance followed, comprising $1.25 billion at 8.63% due in 2036 and $1.10 billion at 9.13% due in 2046.

Nigeria also secured a $1.8 billion syndicated loan from First Abu Dhabi Bank. In 2026, a $5 billion derivatives financing arrangement was agreed with the bank, with Nigeria drawing $1.5 billion in June 2026. The IMF cautioned Nigeria over the derivatives-based financing arrangement, warning that such transactions are “often complex and lack transparency.” Fitch also raised concerns about transparency, liquidity and creditor-recovery risks associated with structures such as Total Return Swaps and repo transactions. The Federal Government defended the facility, saying no oil revenues or strategic national assets were pledged as collateral.

President Tinubu signed the 2026 Appropriation Bill into law, approving total expenditure of ₦68.32 trillion for the fiscal year. The record budget is expected to be financed partly through deficit-backed borrowing, with the deficit estimated at about ₦31.4 trillion. Planned borrowing for 2026 increased to ₦29.20 trillion. The Federal Government also targeted ₦2 trillion in borrowing through multilateral and bilateral project-tied loans. 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.

Nigeria’s total public debt stock rose to ₦166.79 trillion as of June 30, 2026, from ₦159.35 trillion as of March 31, 2026. Domestic debt accounted for ₦91.59 trillion, representing 54.91% of the country’s total debt portfolio. Federal Government external debt stood at ₦65.77 trillion, representing 39.44% of total public debt. States and the Federal Capital Territory accounted for ₦9.42 trillion, or 5.65%, in external debt.