Nigeria Federal Government liabilities reach N7.84 trillion

The Nigerian Federal Government’s outstanding guarantees and contingent liabilities reached N7.84 trillion as of June 30, 2026, according to a report from the Debt Management Office (DMO). These liabilities represent potential debts that could impact public finances if underlying projects or borrowers fail to meet their obligations.

The largest single exposure is the collateral for a $1.5 billion Total Return Swap with First Abu Dhabi Bank, valued at N2.74 trillion and accounting for approximately 35% of the total liabilities. This amount was drawn from a larger $5 billion swap arrangement and is backed by Federal Government bonds maturing in May 2032.

Other significant exposures include:

• Power sector: Put-Call Option Agreements (PCOAs) for various projects, such as the Azura-Edo Independent Power Project, amount to N1.88 trillion (23.93%). • Bank of Industry: Guarantees for a €750 million Eurobond total N1.18 trillion (15.04%). • Lekki Port LFTZ Enterprise: Guarantees for the Lekki Deep Sea Port project stand at N804.96 billion (10.27%). • Pension arrears: Obligations for various ministries, departments, and agencies total N374.88 billion.