NESG Warns Nigeria on Rising External Debt Risks

The Nigerian Economic Summit Group (NESG) has issued a warning regarding Nigeria's increasing reliance on external borrowing, particularly after the country successfully issued a $2.35 billion Eurobond. This issuance was split into two tranches: $1.25 billion in a long 10-year note maturing in 2036 and $1.10 billion in a long 20-year note maturing in 2046.

NESG's latest economic outlook highlights that while the return to the international capital market reflects renewed investor confidence, there is a pressing need for caution in accumulating foreign debt. The group stresses that excessive borrowing could undermine recent gains in credit ratings and weaken investor sentiment.

NESG also points out that Nigeria must balance fiscal needs with long-term macroeconomic stability and emphasizes the importance of managing the external debt profile carefully. Additionally, the group raised concerns about the composition of capital inflows and the necessity for structural reforms to attract sustainable investments for job creation and long-term growth.