World Bank Reports Nigeria's Debt Hits Record Levels

The World Bank Group's International Debt Report 2026 reveals that developing countries, including Nigeria, are experiencing their highest borrowing costs in decades, with external debt hitting a record $9.4 trillion in 2025. Countries eligible for the Bank's concessional International Development Association (IDA) loans paid an average of 8.2 percent on new private-creditor commitments, the highest since 1989.

Nigeria, as an IDA borrower, owed approximately $19.12 billion to the IDA as of June 30, 2026. The report indicates that developing countries' external debt rose by 5.5 percent, with IDA-eligible countries' debt growing by 8.1 percent to $1.3 trillion.

Nigeria's external debt service was $5.15 billion in 2025, a 10.6 percent increase from the previous year, with Eurobond repayments constituting about $2.49 billion. The report highlights that low- and middle-income countries paid $1.4 trillion in principal and interest in 2025, marking the fifth consecutive annual rise.