Nigeria’s growing debt burden is coming under fresh scrutiny following a new World Bank report showing that the country’s external debt rose to $145.02 billion in 2025.
The figure represents a 6.6 per cent increase from the $135.99 billion recorded in 2024, according to the World Bank’s International Debt Report 2026, released on Thursday, November 5.
The report also revealed that Nigeria’s external debt has expanded by more than $61 billion over the last 10 years, raising further concerns about the country’s dependence on foreign borrowing.
Beyond the rising debt figure, the cost of securing new loans has become another major concern. Nigeria paid an average interest rate of 9.6 per cent on loans obtained from private creditors in 2025, significantly higher than the 1.9 per cent charged by official lenders.
The situation is putting additional pressure on the country’s foreign exchange earnings, with the World Bank estimating that Nigeria spent 19 per cent of its export revenue on servicing external debts.
The development reflects a wider debt challenge facing developing economies. According to the report, these countries collectively spent a record $1.4 trillion on debt servicing in 2025.
The World Bank warned that expensive borrowing could leave governments with fewer resources to address pressing national needs, particularly in healthcare, education, infrastructure development and employment generation.
For Nigeria, the figures highlight the growing challenge of managing its debt obligations while finding enough money to support economic development and improve the living conditions of citizens.
