Tinubu Borrows $11.36Bn in 3 Years As Nigeria’s Debt Rises Sharply
- Nigeria's external debt climbed from $43.16bn in June 2023 to $54.52bn by June 2026, a rise of about 26%
- The World Bank Group held the largest share of Nigeria's multilateral debt at $20.73bn as of June 2026
- The Debt Management Office confirmed total public debt reached N166.79 trillion at the end of June 2026
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria's external debt has grown by $11.36 billion since President Bola Tinubu took office in May 2023, driven by increased borrowing from multilateral lenders, international bond markets, and commercial creditors.
Figures published by the Debt Management Office (DMO) showed that Nigeria's external debt reached $54.52 billion as of June 30, 2026, up from $43.16 billion recorded in June 2023, representing a rise of roughly 26% over three years.
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World Bank holds largest share of Nigeria's debt
The World Bank Group is Nigeria's biggest multilateral creditor, with $20.73 billion outstanding as of June 2026.
The figure is split between $19.12 billion owed to the International Development Association and $1.61 billion to the International Bank for Reconstruction and Development.
Since 2024, Nigeria has secured several World Bank financing packages to fund economic reforms, social protection, infrastructure, agriculture and education programmes, Nairametrics reports.
Other multilateral creditors include the African Development Bank Group, the Islamic Development Bank and the International Fund for Agricultural Development.
Eurobonds and commercial loans add pressure
Commercial borrowing makes up a significant share of Nigeria's external obligations.
The DMO reported that Nigeria’s outstanding Eurobonds stood at $18.55 billion as of June 2026, making them a major part of the country’s external debt.
Nigeria also had $1.87 billion in syndicated financing from First Abu Dhabi Bank and $1.5 billion under a Total Return Swap arrangement.
The $5 billion financing deal has drawn scrutiny from international institutions over concerns about the complexity and transparency of derivatives-based sovereign borrowing.
The Federal Government has maintained that no crude oil revenues or strategic national assets were pledged as collateral for the facility.
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Total public debt crosses N166 trillion
The rise in external borrowing has run alongside an expansion in domestic debt.
The DMO said total public debt stood at N166.79 trillion at the end of June 2026, comprising N91.59 trillion in domestic debt and N75.20 trillion in external debt.
The federal government accounted for N153.77 trillion of that figure, with the remaining balance attributed to state governments and the Federal Capital Territory.
Nigeria's 2026 budget projects a deficit of about N31.46 trillion, with borrowing expected to cover much of the shortfall.
The government has said the borrowing is necessary to fund infrastructure and development spending, while its broader reform agenda aims to boost revenue and restore economic stability over time.
Lagos ranked Nigeria's most indebted state
Earlier, Legit.ng reported that Nigeria's 36 states and the Federal Capital Territory (FCT) owed a combined domestic debt of N4.59 trillion as of June 30, 2026.
The figure accounts for 2.75% of Nigeria's total public debt of N166.79 trillion as of the same date.
The federal government held the bulk of the country's domestic debt at N87.00 trillion, while states and the FCT accounted for the remaining N4.59 trillion of the N91.59 trillion total domestic debt.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
