Under President Bola Ahmed Tinubu, Nigeria's external debt has increased significantly, rising by $11.4 billion over the past three years. As of June 2026, the total external debt reached approximately $54.5 billion, compared to $43.1 billion when Tinubu assumed office.
This increase has been fueled by a mix of commercial borrowing, multilateral loans, and syndicated financing. Notably, loans from the World Bank have played a major role, with Nigeria's debt to the institution climbing from $15.4 billion to around $20.7 billion during this period.
The country has also returned to the international commercial debt market, issuing Eurobonds and securing loans from banks, including a $1.8 billion syndicated loan from First Abu Dhabi Bank. However, the International Monetary Fund (IMF) has raised concerns regarding the complexity and transparency of these financing arrangements.
As Nigeria's public debt reached N166.79 trillion by mid-2026, the government plans to finance a record budget of N68.32 trillion through increased borrowing. This includes a target of N29.20 trillion in new debt, emphasizing the growing reliance on both external and domestic loans amidst rising fiscal pressures.
The overall debt situation highlights the challenges facing Nigeria's economy, with the Federal Government accounting for the majority of the public debt, raising questions about sustainability and future economic reforms.