Nigeria’s largest creditors in US dollars

Nigeria’s external debt profile expanded significantly in 2025 as the Federal Government continued to rely on multilateral lenders, bilateral partners, and international capital markets to bridge fiscal gaps, fund infrastructure, support economic reforms, and stabilize public finances amid persistent macroeconomic pressures.

Analysis of Nigeria’s External Debt Stock Data sourced from the Debt Management Office (DMO), Nairalytic and reviewed by Nairametrics Research shows that the country’s total external debt rose to $51.86 billion as of December 2025, representing a 13.27% year-on-year increase from $45.78 billion recorded at the end of 2024.

On a quarter-on-quarter basis, external debt also increased by 7.0% from $48.46 billion recorded in September 2025, highlighting the pace of fresh borrowings and debt revaluations during the period.

What the data is saying 

A closer look at the figures shows that Nigeria’s debt exposure remains heavily concentrated among a few major creditors, led by Eurobond investors and multilateral institutions such as the International Development Association (IDA), the African Development Bank (AfDB), and the International Bank for Reconstruction and Development (IBRD).

• The top 10 creditors combined make up over 98% of Nigeria’s external exposure, reinforcing how concentrated the country’s foreign obligations have become among a small group of lenders and international investors.
• The top two creditors, Eurobond investors and the World Bank’s IDA, accounted for 71.5% of total external exposure.
• The Multilateral group comprising the World Bank Group and the African Development Bank Group (AfDB) credit to Nigeria rose to $23.85 billion in 2025, contributing 45.99% to the total external debt stock.
• Nigeria’s obligations to World Bank institutions exceeded $19.89 billion, reinforcing the World Bank Group’s position as one of Nigeria’s most important development financiers.
• The Bilateral Group’s credit exposure totaled $6.72, representing 12.97% of the external debt.
• Notably, the Syndicated loans for projects rose significantly by 80.72% quarter-on-quarter to $2.51 billion from $1.39 billion as at September 2025.

Top Nigeria’s largest creditors and how much we owe them – 2025 

African Development Bank (AfDB – Multilateral) –$2.18 billion

Nigeria’s debt to the African Development Bank (AfDB) rose to $2.18 billion in December 2025 from $2.10 billion in December 2024.

This represents a 3.70% year-on-year increase and a 1.20% quarterly increase.

AfDB loans accounted for approximately 4.2% of total external debt.

The bank remains a major financier of transportation, energy, agriculture, and industrialization projects across Africa, including Nigeria’s infrastructure modernization agenda.

Syndicated Loans (Commercial – Project Financing)–$2.51 billion 

Nigeria’s debt under syndicated loans jumped from $1.39 billion in September 2025 to $2.51 billion in December 2025, reflecting a sharp 80.72% quarter-on-quarter increase.

The category had no comparable balance in December 2024, likely reflecting fresh project-linked borrowings during the year.

Syndicated loans are typically arranged by groups of international lenders to finance major infrastructure or energy projects requiring large capital commitments.

The sharp increase suggests Nigeria accelerated external project financing toward the end of the year amid rising infrastructure funding needs and fiscal constraints.

China (Exim Bank of China – Bilateral) –$5.06 billion

Among bilateral partners, China remained Nigeria’s biggest creditor in 2025 through loans largely tied to infrastructure development.

Nigeria owed the Exim Bank of China $5.06 billion as of December 2025, marginally lower by 0.01% from the debt stock recorded in December 2024.

On a quarterly basis, however, debt rose by 5.13% from $4.82 billion in September 2025.

Chinese loans accounted for about 9.77% of Nigeria’s external debt stock, making China the country’s largest bilateral lender by a wide margin.

Most Chinese loans have historically been tied to railway infrastructure, airport modernization, power projects, telecommunications expansion, and road construction.

While Chinese financing has helped Nigeria address infrastructure gaps, critics continue to question transparency around loan agreements, procurement structures, and repayment terms tied to strategic national assets.

International Development Association (World Bank)–$18.51 billion 

The second-largest creditor to Nigeria in 2025 was the International Development Association (IDA), the concessional lending arm of the World Bank targeted at low-income economies.

Nigeria’s debt to IDA climbed to $18.51 billion in December 2025 from $16.56 billion in December 2024, representing an 11.73% year-on-year increase and a 1.78% quarterly increase.

IDA loans accounted for approximately 35.7% of Nigeria’s total external debt, closely matching the country’s Eurobond exposure.

The increase reflects continued World Bank support for Nigeria’s power sector reforms, social intervention programs, healthcare, education, fiscal stabilization, and infrastructure development initiatives.

IDA facilities are generally attractive because they come with lower interest rates, longer repayment periods, and moratorium structures that reduce short-term debt pressure.

Still, the growing size of Nigeria’s World Bank obligations raises concerns about long-term sustainability and future fiscal flexibility.

Eurobonds (Commercial – International Capital Market) – $18.55 billion 

Eurobonds remained Nigeria’s largest external creditor category in 2025, reflecting the country’s increasing dependence on international capital markets for long-term financing.

The international capital market through Eurobond issuances debt rose to $18.55 billion in December 2025 from $17.32 billion recorded a year earlier, reflecting a 7.10% year-on-year increase. The figure was also up by 7.10% quarter-on-quarter from September 2025.

With total external debt at $51.86 billion, Eurobonds alone accounted for 35.77% of Nigeria’s total external debt stock, underscoring the country’s increasing dependence on global investors for long-term financing.

Nigeria has consistently tapped the Eurobond market to finance budget deficits, refinance existing obligations, support foreign exchange reserves, and fund capital expenditure projects. Eurobonds also provide access to large pools of foreign capital without the policy conditions often attached to multilateral loans.

However, analysts continue to raise concerns over rising debt servicing costs tied to Eurobonds, especially in an era of elevated global interest rates and a weaker naira. Since Eurobond repayments are denominated in foreign currency, exchange rate depreciation significantly increases repayment pressure on government finances.

More Insights

Nigeria’s obligations to major multilateral and bilateral creditors expanded further in 2025, reflecting growing financing needs across infrastructure, healthcare, power, education, and fiscal stabilization programmes.

• Nigeria’s exposure to the International Bank for Reconstruction and Development (IBRD), another World Bank institution increased to $1.38 billion, up from $1.24 billion in 2024, representing an 11.41% year-on-year growth and a 1.77% quarterly increase.
• IBRD loans are typically non-concessional and are often used for large-scale infrastructure and development projects.
• Nigeria’s debt to the African Development Bank rose to $2.18 billion, while debt to the African Development Fund stood at $1.02 billion.
• France, through Agence Française de Développement (AFD), recorded one of the strongest increases among Nigeria’s top creditors after debt exposure increased by 53.80% year-on-year to $911.43 million from $592.60 million in 2024 and a 14.19% quarterly increase.
• French financing has increasingly supported climate-related projects, urban transportation systems, water infrastructure, and energy transition initiatives in Nigeria.
• Nigeria’s debt to the China Development Bank more than doubled to $517.37 million during the review period from $254.71 million in December 2024, representing a massive 103.12% year-on-year increase and a 22.16% quarter-on-quarter increase.
• The increase reflects Nigeria’s growing engagement with Chinese development financing institutions beyond the traditional Exim Bank channels.
• Nigeria’s debt to the Islamic Development Bank increased to $347.44 million in December 2025 from $268.47 million a year earlier. This represents a 29.41% year-on-year increase and an 11.85% quarterly rise. The bank has continued to support agricultural financing, education, healthcare, and infrastructure development projects across Nigeria.

Most of the borrowings were linked to infrastructure financing, development projects, fiscal support programmes, and economic reform initiatives.

What you should know 

Despite the role of external financing in supporting economic development, concerns continue to mount over Nigeria’s debt sustainability outlook, particularly as debt servicing costs rise amid weak government revenue growth and exchange rate pressures.

• A significant portion of Nigeria’s external debt is denominated in foreign currencies, making repayment costs more expensive following naira depreciation.
• Rising global interest rates have increased refinancing risks, especially for Eurobond obligations.
• Analysts have continued to raise concerns about whether borrowed funds are being invested in projects capable of generating strong economic returns.
• The top 10 creditors accounted for the overwhelming majority of Nigeria’s total external debt stock in 2025, highlighting the concentration of the country’s foreign obligations among a small group of lenders.

As Nigeria’s borrowing profile continues to expand, improving revenue generation, export earnings, and foreign exchange inflows will remain critical to managing future debt servicing obligations and maintaining fiscal sustainability.