A new World Bank report shows Nigeria’s external debt burden rising sharply, raising fresh concerns about fiscal risks and sustainability.
The World Bank’s International Debt Report 2025 reveals that Nigeria, Bangladesh, and Pakistan now hold nearly 30% of all external debt owed by countries eligible for International Development Association support. The report highlights rising net debt inflows, heavier reliance on multilateral lenders, and increasing concerns over debt sustainability.
Public and publicly guaranteed debt still dominates the structure, making up 75% of total long-term external debt, while private non-guaranteed debt accounts for 25%. In 2024, PPG debt rose to $816.5 billion, while PNG debt slightly declined.
Debt concentration is tightening, with seven of the top ten borrowers holding more than half of all IDA-eligible external debt. Net debt inflows jumped 18.6% to $53.1 billion, driven by a shift in short-term borrowing.
For Nigeria, the warning is clear: rising external debt, higher servicing costs, and growing exposure to global financial shocks demand stronger transparency and more disciplined borrowing.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
