Nigeria's Debt to Reach $72.6 Billion by 2027, IMF Warns

The International Monetary Fund (IMF) has disclosed that Nigeria's public external debt is expected to increase from $51.9 billion in 2025 to $72.6 billion by 2027, marking a 39.9% rise within two years. This projection was made in the IMF's 2026 Article IV consultation report released on Tuesday.

The report indicates that the upcoming presidential elections in January 2027 may exert additional spending pressures, exacerbating poverty and food insecurity, and widening the fiscal deficit. The IMF forecasts that Nigeria's total external debt, including public and private sector obligations, will rise from $109.3 billion in 2025 to $132.0 billion by 2027.

Debt servicing is projected to consume over half of the federal government's revenue, with interest payments expected to rise from $2 billion in 2025 to $3 billion in 2027. The report underscores the growing reliance on external borrowing to finance government operations, with the IMF advising caution in pursuing proposed financial arrangements.