Nigeria’s external debt is projected to reach approximately $45.1 billion by the end of 2024, reflecting an upward trajectory in borrowing. As of June 2024, the external debt stood at $42.9 billion, with states and the Federal Capital Territory accounting for about 11% of this figure. The federal government is the primary borrower, with multilateral debts, bilateral loans (e.g., from China and other institutions), and commercial bonds forming the bulk of these liabilities.
This rising debt burden is linked to Nigeria’s efforts to finance its budget deficits, including raising funds domestically and through Eurobonds. However, the increasing debt has raised concerns about sustainability, with debt servicing taking a significant portion of government revenue
