World Bank Unveils How Much Nigeria Owes China as Tinubu Requests Fresh Loans
- China accounts for $5.67 billion of Nigeria’s bilateral debt, about 85 per cent of loans owed to foreign governments
- President Tinubu is seeking National Assembly approval for $7.7 billion in foreign borrowing to help fund the 2026 budget
- Nigeria’s external debt reached $145.02 billion in 2025, while debt servicing absorbed 19 per cent of export earnings
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s debt obligations to China have reached $5.67 billion, making the Asian country its largest bilateral creditor, as President Bola Tinubu seeks approval for an additional $7.7 billion in foreign borrowing to finance the 2026 budget.
Fresh figures from the World Bank show that China accounts for approximately 85 per cent of Nigeria’s $6.68 billion debt owed to foreign governments, raising fresh concerns about the country's growing external borrowing commitments.
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The figures, contained in the World Bank’s International Debt Report 2026, show that Nigeria’s total external debt stock increased by 6.6 per cent, from $136.05 billion in 2024 to $145.02 billion in 2025.
China dominates Nigeria’s bilateral debt obligations
According to the report, Nigeria owed China $5.67 billion at the end of 2025, significantly exceeding its $774 million debt to France.
Other bilateral creditors accounted for $237 million, highlighting China's dominant position among foreign governments lending to Nigeria.
Bilateral debt refers to loans obtained directly from foreign governments or their agencies, unlike multilateral borrowing from international financial institutions.
Nigeria's total bilateral obligations formed part of its $62.4 billion public and publicly guaranteed external debt.
Of this amount, multilateral creditors held $31.37 billion, while private creditors accounted for $24.35 billion.
World Bank reveals Nigeria’s biggest lenders
The World Bank's International Development Association emerged as Nigeria's largest multilateral creditor, with outstanding obligations of $18.53 billion.
International Monetary Fund Special Drawing Rights allocations accounted for $5.52 billion, while other multilateral institutions held $7.32 billion.
The report further revealed that Nigeria's overall external debt increased from $83.21 billion in 2015 to $145.02 billion in 2025, representing approximately 74.3 per cent growth over the decade.
The $145.02 billion figure includes $54.48 billion in private nonguaranteed borrowing and $28.14 billion in short-term external obligations, alongside public and publicly guaranteed debt.
These categories mean the entire external debt stock cannot be attributed directly to Federal Government borrowing.
Tinubu seeks fresh N10.79trn borrowing approval
The disclosure comes as President Tinubu approaches the National Assembly for approval to secure an additional $7.707 billion in external financing.
In a letter read during Wednesday's plenary by Senate President Godswill Akpabio, Tinubu explained that the proposed borrowing would support the financing requirements of the 2026 budget.
At the budget exchange rate of N1,400 per dollar, the request translates to approximately N10.79 trillion.
The amount represents the external component of the N29.2 trillion borrowing provision in the 2026 Appropriation Act.
The borrowing plan also includes N18.4 trillion to be raised domestically.
Rising debt servicing raises fresh concerns
Beyond the outstanding debt figures, the World Bank highlighted Nigeria's increasing repayment obligations, Punch reports.
The country's external debt-to-exports ratio reached 212 per cent in 2025, while external debt represented 51 per cent of Gross National Income.
Debt servicing consumed the equivalent of 19 per cent of export earnings, with the debt service-to-GNI ratio standing at five per cent.
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The report also exposed significant differences in borrowing costs.
While new external commitments from official creditors attracted an average interest rate of 1.9 per cent, private creditors charged an average of 9.6 per cent.
World Bank Chief Statistician Haishan Fu warned that developing economies were increasingly borrowing at higher costs, potentially leaving fewer resources for long-term development.
The findings underline the importance of Nigeria's borrowing choices as the government seeks additional financing while managing existing repayment obligations.
Tinubu seeks fresh $21.7 billion loans
Legit.ng earlier reported that Nigeria’s public debt could approach N200 trillion following President Bola Tinubu’s request for additional foreign loans, raising concerns about debt sustainability, rising repayment obligations and funding for essential public services.
Tinubu has asked the Senate to approve a supplementary external borrowing plan comprising $20.52 billion and €1.05 billion for 2026–2027;
Source: Legit.ng
