Nigeria’s Debt Servicing Costs Rise Amid New Loan Plan

Nigeria's proposed $21.7 billion loan plan may increase annual debt servicing costs to $4.2 billion, according to an independent assessment.

The Debt Management Office (DMO) reported that Nigeria's external debt stock rose by $2.6 billion quarter-on-quarter, reaching $54.5 billion in the second quarter of 2026. This marks a 16 percent year-on-year increase.

Federal Government obligations account for $47.7 billion, or 87.5 percent of the total external debt, with the remainder owed by state governments and the Federal Capital Territory. The proposed €1 billion facility, at an exchange rate of $1.113 to the euro, adds approximately $1.1 billion to the total borrowing programme.