Nigeria’s external debt stock has climbed to $145.02bn, representing a 6.6 per cent increase in 2025, as the World Bank warns that rising borrowing costs are placing growing pressure on developing economies.
The figure was contained in the World Bank’s International Debt Report 2026, released on Thursday, which examined external borrowing patterns and debt-servicing obligations across low- and middle-income countries.
According to the report, Nigeria’s external debt increased from $135.99bn in 2024 to $145.02bn at the end of December 2025.
The debt comprises $62.4bn in public and publicly guaranteed obligations, $54.48bn in private non-guaranteed debt and $28.14bn in short-term liabilities.
The report also highlighted the increasing cost of accessing international financing, particularly from private creditors.
Nigeria paid an average interest rate of 9.6 per cent on new borrowing from private creditors in 2025, compared with 1.9 per cent on loans obtained from official creditors.
The difference underscores the significantly higher cost of commercial borrowing and the financial pressure it could place on the country’s economy.
The World Bank further disclosed that Nigeria’s external debt-to-exports ratio stood at 212 per cent in 2025, while its external debt-to-gross national income ratio was 51 per cent.
Debt-servicing obligations accounted for 19 per cent of the country’s export earnings, highlighting the growing demands on foreign exchange revenues.
Beyond Nigeria, the report revealed that external debt among low- and middle-income countries rose by 5.5 per cent to a record $9.4 trillion in 2025, marking the fastest annual increase since 2021.
The World Bank warned that rising debt-servicing costs could leave developing countries with fewer resources to invest in essential sectors, including healthcare, education, infrastructure and job creation.
Haishan Fu, the World Bank Group’s chief statistician and director of development data, said developing economies were increasingly borrowing at higher costs, leaving less money available for long-term development.
The report also noted that developing countries paid approximately $1.4 trillion in principal and interest on their external debts in 2025, marking the fifth consecutive year of rising debt-servicing payments.
For Nigeria, the latest figures renew attention on the country’s borrowing strategy, the cost of servicing foreign obligations and the long-term implications for economic growth.
The World Bank stressed the need for affordable, transparent and sustainable financing, warning that increasing access to loans alone would not guarantee meaningful development.
