Nigeria’s external debt increased to $145.02 billion in 2025, representing a 6.6 per cent rise from the $135.99 billion recorded in the previous year, according to the World Bank.

The figures were contained in the institution’s International Debt Report 2026, which examined the borrowing positions and repayment obligations of developing economies.

The report showed that Nigeria’s external debt comprises different categories of obligations, including government-backed loans, private-sector borrowing and short-term liabilities.

Public and publicly guaranteed external debt accounted for $62.4 billion, while private-sector borrowing without government guarantees stood at $54.48 billion.

Short-term external debt was estimated at $28.14 billion.

The report also identified China as Nigeria’s largest bilateral creditor, with the country owing approximately $5.67 billion to the Asian nation by the end of 2025.

Nigeria’s obligations to France stood at about $774 million, while other bilateral lenders accounted for the remaining amount.

The figures come as the Federal Government seeks legislative approval for a fresh $7.7 billion external borrowing plan to support the financing of the 2026 budget.

The World Bank’s report also highlighted the pressure debt repayments place on developing economies, warning that increasing borrowing costs could leave governments with fewer resources for essential development programmes.

The rising debt figures have renewed attention on Nigeria’s borrowing strategy and the long-term implications for public finances.

Sources: TheCable, The Punch and World Bank International Debt Report.