Nigeria borrowed $634m from other countries in 2025 – Report

Nigeria’s bilateral debt stock rose by $634.34m in 2025, as loans owed directly to other countries increased from $6.09bn in 2024 to $6.72bn at the end of 2025.

This was contained in the latest external debt stock data from the Debt Management Office for December 31, 2025, compared with the corresponding figures for December 31, 2024.

The increase represented a 10.42 per cent year-on-year rise in Nigeria’s bilateral credit, even though its share of the country’s total external debt dropped slightly from 13.30 per cent in 2024 to 12.97 per cent in 2025.

The decline in share, despite the rise in value, showed that other external debt categories grew faster during the year.

Nigeria’s total external debt rose from $45.78bn in 2024 to $51.86bn in 2025, an increase of $6.08bn or 13.27 per cent.

A breakdown of the report showed that France and the China Development Bank accounted for the bulk of the rise in bilateral debt.

Loans from France, through Agence Francaise Development, jumped by $318.83m from $592.60m in 2024 to $911.43m in 2025, representing a 53.80 per cent increase.

Debt owed to the China Development Bank is more than doubled, rising by $262.66m from $254.71m to $517.37m. This represented a 103.12 per cent increase and made it the second-biggest contributor to the rise in bilateral debt.

Together, France and the China Development Bank accounted for $581.49m of the $634.34m increase, or about 91.66 per cent of the total rise in bilateral debt.

Japan’s credit through the Japan International Cooperation Agency also increased sharply by $77.53m, from $53.31m in 2024 to $130.84m in 2025, representing a 145.43 per cent rise.

However, not all bilateral creditors recorded increases. Debt owed to the Exim Bank of China fell marginally by $570,000 from $5.06464bn to $5.06407bn. Despite the slight decline, China’s Exim Bank remained Nigeria’s largest bilateral creditor, accounting for about 75.31 per cent of total bilateral debt in 2025.

India’s Exim Bank exposure declined by $6.04m from $19.42m to $13.38m, while Germany’s Kreditanstalt Fur Wiederaufbau fell by $18.07m from $105.78m to $87.71m.

The figures showed that Nigeria’s bilateral debt remained heavily concentrated around Chinese lending institutions. When the Exim Bank of China and China Development Bank are combined, Nigeria owed Chinese lenders $5.58bn at the end of 2025, compared with $5.32bn in 2024.

This means Chinese bilateral creditors accounted for about 83 per cent of Nigeria’s bilateral debt stock in 2025.

Beyond bilateral loans, the DMO data showed that multilateral debt remained the largest component of Nigeria’s external obligations, rising from $22.32bn in 2024 to $23.85bn in 2025.

Eurobond debt also increased from $17.32bn to $18.55bn, while other commercial loans rose sharply from $54.87m to $2.73bn, mainly due to syndicated project loans.

Sunday PUNCH observed that the country’s debt exposure to China could rise further, as the Federal Government is in advanced discussions with the Export-Import Bank of China for a $2bn facility to finance a new electricity super grid aimed at addressing the country’s persistent power supply constraints.

The Emir of Kano, Muhammadu Sanusi II, and the Presidency on Friday traded words over the country’s rising debt burden, following renewed concerns by the monarch about continued borrowing by President Bola Tinubu’s administration.

Sanusi, a former Governor of the Central Bank of Nigeria, questioned the Federal Government’s growing reliance on loans despite the removal of petrol subsidy, warning that weak fiscal discipline could undermine the gains expected from the reforms.

His comments come amid controversy over a fresh loan request by the President, who asked the Senate to approve $516.3m for sections of the Sokoto–Badagry Superhighway project.

Speaking during an interview on News Central TV, Sanusi said that although the removal of fuel subsidy and foreign exchange liberalisation were necessary reforms, their sequencing and execution raised serious concerns.

“We’ve removed the subsidy. We’re now spending it. What we should not see is fiscal indiscipline. You cannot remove wastages and continue borrowing. If you’re not paying the subsidy and you’ve got the money, why are we still borrowing?” he asked.

He added, “We cannot continue supporting foreign refineries as an oil-producing country while our own refineries are not functioning.”