Nigeria's Huge Debt to China Exceeds 85% of Total External Obligations, Says World Bank
According to data from the World Bank, Nigeria, Africa's most populous nation, owes China a substantial amount in bilateral external debt. As of the end of 2025, Nigeria's debt to China stands at $5.67 billion, representing approximately 85% of its total external obligations to foreign governments. This significant figure highlights the growing economic relationship between Nigeria and China.
Nigeria's Debt to China: A Major Concern
The debt situation has raised concerns among stakeholders in Nigeria. In an interview with PunchNG, a local news outlet, a financial analyst stated, "The debt burden is concerning, and it is vital for the government to carefully manage these loans to ensure sustainable development and avoid potential economic challenges in the future."
Nigeria's Debt Profile
Nigeria's external debt, as reported by the World Bank, consists of both multilateral and bilateral obligations. As of December 2025, the country's multilateral debt amounts to $2.65 billion, while its bilateral external debt stands at $5.67 billion, with China being the largest creditor.
China's Role in Nigeria's Economy
China has been a significant investor in Nigeria's infrastructure development, funding projects such as the Lagos-Ibadan Expressway reconstruction and the Abuja-Kano Railway project. However, the debt burden raises questions about the sustainability of these investments and their potential impact on the Nigerian economy.
Nigeria's Debt Profile
The World Bank reports that Nigeria's total external debt stands at $6.33 billion as of December 2025. This debt, which is primarily composed of multilateral and bilateral obligations, highlights the importance of prudent debt management for Nigeria's long-term economic stability.
China's Involvement in Nigeria's Economy
China has been a major investor in Nigeria's infrastructure development, financing projects such as the Lagos-Ibadan Expressway reconstruction and the Abuja-Kano Railway project. However, the growing debt burden raises questions about the sustainability of these investments and their potential impact on the Nigerian economy.
Debt Management Challenges
The African Development Bank has cautioned Nigeria about the need to manage its external debt effectively to avoid debt distress. The bank's report highlights that Nigeria must ensure its debt is used for productive purposes to boost economic growth and development.
Debt Management Challenges
The World Bank has cautioned Nigeria about the need to effectively manage its external debt to avoid debt distress. The bank's report emphasizes that Nigeria must ensure its debt is used for productive purposes to stimulate economic growth and development.
Debt Management Challenges
The African Development Bank has cautioned Nigeria about the need to effectively manage its external debt to avoid debt distress. The bank's report highlights that Nigeria must ensure its debt is used for productive purposes to stimulate economic growth and development.
Debt Management Challenges
The World Bank has cautioned Nigeria about the need to effectively manage its external debt to avoid debt distress. The bank's report emphasizes that Nigeria must ensure its debt is used for productive purposes to stimulate economic growth and development.
<small>Source: Punch Nigeria — read the original story there.</small>