Nigeria Pays More to Service External Debt Despite Falling Debt Ratios
The World Bank has revealed that Nigeria's external debt became more expensive to service in 2025, despite a decline in key debt ratios. According to the International Debt Report 2026, Nigeria's external debt-to-exports ratio stood at 212%, a 4.3% decrease from the previous year, while the debt-to-Gross National Income (GNI) ratio decreased by 6.6%, reaching 51%.
Nigeria's External Debt Costs Rise Despite Debt Ratios Decline
The report stated that despite the decrease in debt ratios, Nigeria's external debt service costs increased by 9.6% in 2025, leading to a strain on the nation's resources.
World Bank Warns of Increasing Debt-Service Obligations
World Bank Chief Statistician, Haishan Fu, expressed concern over the rising debt-service obligations faced by low and middle-income countries, including Nigeria, which are borrowing more, paying more, and leaving less for critical development priorities such as infrastructure, employment, education, and healthcare.
Nigeria's External Debt Stock Reaches $145.02 Billion
The report also revealed that Nigeria's external debt stock reached $145.02 billion in 2025, indicating a 6.6% increase from the previous year.
Nigeria's External Debt Service Costs Increase
Despite the decline in debt ratios, Nigeria's external debt service costs increased by 9.6% in 2025, putting a strain on the nation's resources.
Nigeria's External Debt Service Costs Rise Despite Debt Ratios Decline
The World Bank's Chief Statistician, Haishan Fu, expressed concern over the rising debt service obligations faced by low and middle-income countries, including Nigeria, which are borrowing more, paying more, and leaving less for essential development priorities such as infrastructure, employment, education, and healthcare.
Nigeria's External Debt Stock Reaches $145.02 Billion
The report also revealed that Nigeria's external debt stock reached $145.02 billion in 2025, indicating a 6.6% increase from the previous year.
</body> </html><small>Source: The Sun Nigeria — read the original story there.</small>
