Tinubu adds $11.4 billion to Nigeria’s external debt burden

Nigeria's external debt burden has swelled by $11.4 billion over the past three years under President Bola Tinubu's administration, showcasing the uptick in borrowing that accompanied his economic efforts. According to Nairametrics' checks, Nigeria's total external debt was approximately $54.5 billion as of June 2026, compared to roughly $43.1 billion when Tinubu took office.

This rise has been fueled by a mix of commercial borrowing, dependence on multilateral loans, and more recently, syndicated financing. Domestic debt has also expanded from about N59.1 trillion to around N91.5 trillion, partly due to the securitization of Ways and Means advances and heightened Treasury Bills issuances. Among the biggest contributors to Nigeria's external borrowing surge is funding from the World Bank, with the Federal Government securing a fresh $1.25 billion loan in 2026 under a program aimed at boosting finance access, digital services, and electricity while promoting tax, trade, and agriculture reforms.

The country's Eurobond debt has also climbed during the last two and a half years as Nigeria reconnected with the international commercial debt market. The first substantial boost came in December 2024 with a $2.2 billion dual-tranche Eurobond issuance. The IMF has expressed concerns over Nigeria's derivatives-based financing, warning that such transactions are "often complex and lack transparency."

Fitch has also raised red flags about transparency, liquidity, and creditor-recovery risks linked to structures like Total Return Swaps and repo transactions. The Federal Government has defended the facility, clarifying that no oil revenues or strategic national assets were used as collateral. President Tinubu signed the 2026 Appropriation Bill into law earlier this year, approving a total expenditure of N68.32 trillion for the fiscal year.

The record budget is anticipated to be funded partially through deficit-backed borrowing, with the deficit estimated at about N31.4 trillion. The surge in domestic borrowing has been facilitated by instruments such as FGN bonds and Treasury Bills, contributing to the expansion of Nigeria's overall debt stock. As of June 30, 2026, Nigeria's total public debt stock had reached N166.79 trillion, up from N159.35 trillion as of March 31, 2026.

Domestic debt accounted for N91.59 trillion, making up 54.91% of the nation's total debt portfolio. Overall, the Federal Government's share of Nigeria's public debt stood at about N152.77 trillion, while states and the FCT accounted for roughly N14.01 trillion. These data highlight the Federal Government's substantial share of Nigeria's public debt portfolio as external and domestic borrowing have risen.