Nigeria owed China $5.67 billion in bilateral external debt by the end of 2025, according to a report from the World Bank. The sum represents about 85 per cent of the country's total $6.68 billion obligations to foreign governments.
The findings from the World Bank’s International Debt Report 2026 place China as Nigeria's biggest bilateral creditor, as reported by Punch. France came second on the list with $774 million, while other bilateral lenders accounted for the remaining $237 million.
The report also revealed that Nigeria’s total external debt stock climbed by 6.6 per cent to $145.02 billion in 2025, up from $136.05 billion in 2024. Over the past decade, the country's foreign debt increased by roughly 74.3 per cent from the $83.21 billion recorded in 2015.
The total external debt consists of $62.4 billion in public and publicly guaranteed obligations, $54.48 billion in private nonguaranteed debt, and $28.14 billion in short-term commitments. Within the public category, multilateral lenders held the largest share at $31.37 billion, led by the World Bank’s International Development Association with $18.53 billion. Private creditors held $24.35 billion.
The disclosure arrives just as President Bola Tinubu asked the National Assembly to approve a fresh $7.707 billion international loan to fund the 2026 budget deficit. Senate President Godswill Akpabio read the president's request during a plenary session. The sum is meant to cover the foreign component of the N29.2 trillion borrowing plan under the 2026 budget.
On debt sustainability, the World Bank highlighted that Nigeria’s external debt-to-exports ratio reached 212 per cent in 2025, while the debt service-to-exports ratio touched 19 per cent. Official loan commitments averaged a 1.9 per cent interest rate, while loans from private lenders averaged 9.6 per cent.
World Bank Group Chief Statistician Haishan Fu pointed out that while private lending has returned, developing nations are facing higher borrowing costs. Fu noted that responsible debt management remains vital to safeguarding long-term development and future generations.
