Nigeria’s External Borrowing from 2021 to 2025: A Growing Reliance on Foreign Debt

Nigeria’s foreign borrowing between 2021 and early 2025 has involved substantial bilateral loans from several countries, supplementing multilateral and commercial debt. While China remains the largest bilateral lender, financing infrastructure projects such as the $1.3 billion Zungeru Hydroelectric Power Plant and various railway lines through its Export-Import Bank, other countries have also contributed notable sums.

As of March 31, 2025, Nigeria’s total public debt stood around $97.3 billion (₦149.3 trillion), with external debt making up nearly half at about $46 billion (₦70.6 trillion).

France, India, and Germany have been key additional bilateral creditors to Nigeria during this period. France’s Agence Française de Développement (AFD) has extended loans to support energy, social, and development projects. Germany’s KfW development bank has likewise provided financial assistance earmarked for infrastructure and climate-related initiatives. India’s Export-Import Bank has offered loans targeting trade and industrial development programs.

As of late 2024, bilateral debts constituted about $6.09 billion of Nigeria’s total external debt—approximately 13.3 percent—with China’s Exim Bank accounting for approximately $5.06 billion of that amount, while France, India, and Germany make up the remainder. These loans typically come with concessional terms compared to commercial borrowing but add significantly to Nigeria’s total external debt obligations.

Alongside these bilateral loans, Nigeria’s borrowing portfolio includes multilateral loans from the World Bank, IMF, and African Development Bank, and commercial borrowings such as Eurobonds and syndicated loans. In July 2025, the Nigerian Senate approved plans for an additional $21 billion foreign loan to fund the 2025 budget, further increasing foreign indebtedness.

Overall, Nigeria’s external borrowing reflects a mix of multilateral, bilateral, and commercial sources, with bilateral loans from France, India, and Germany playing a meaningful role alongside China’s dominant position. This diversification supports the country’s development projects but underscores the importance of managing debt sustainability risks through effective fiscal policies and reforms.