Nigeria national debt and fiscal liabilities

Nigeria is experiencing significant fiscal pressure due to rising debt levels and contingent liabilities. As of June 30, 2026, the Federal Government’s outstanding guarantees and contingent liabilities reached N7.84 trillion, according to the Debt Management Office. A major portion of this, approximately N2.74 trillion, stems from collateral for a $1.5 billion Total Return Swap with First Abu Dhabi Bank. Other substantial exposures include N1.88 trillion in power sector agreements and N1.18 trillion in guarantees for the Bank of Industry.

By the end of 2025, Nigeria’s external debt stock had risen to $145.02 billion, marking a 6.6 percent increase from the previous year. This growth has sparked political debate. Former President Olusegun Obasanjo criticized the scale of borrowing, while the Nigeria Democratic Congress challenged the administration’s reliance on debt. In response, President Bola Tinubu defended the government’s request for $7.707 billion to finance the 2026 budget deficit, asserting that loans are directed toward productive infrastructure investments like rail, power, and ports to foster long-term growth.