If you are like me, who has been wondering and asking the question, “How much is Nigeria owing other countries?” then you’re not alone. With all the economic chatter flying around—fuel subsidy removal, forex crisis, inflation—the national debt is one more piece in this complex puzzle. So, let’s break it down in a way that actually makes sense.
How Much is Nigeria Owing – Nigeria’s Public Debt at a Glance
According to the recent Debt Management Office (DMO), Nigeria’s total public debt stood at a whopping ₦49.85 trillion by the end of the first quarter of 2023. That includes what both the federal and state governments owe—yes, they’re all in it together.
To put it into context, that’s an increase of ₦3.6 trillion from ₦46.25 trillion recorded just three months earlier in December 2022.
External vs. Domestic Debt — What’s the Difference?
Nigeria’s debt is split into two major types:
- Domestic debt: What the country owes locally (within Nigeria).
- External debt: What the country owes to other countries or international financial institutions.
Now, external debt is where things get a bit more complicated. It’s categorized under four main types:
- Multilateral (e.g. IMF, World Bank)
- Bilateral (e.g. loans from other countries)
- Commercial (e.g. Eurobonds)
- Promissory notes
Nigeria’s Top 5 Foreign Creditors
Here’s where it gets interesting (and slightly uncomfortable too). As of March 2023, Nigeria owes $5.16 billion to just five countries alone, making it sum up from $5.07 billion in December 2022. These countries are:
| Country | Amount Owed (USD) | Source |
|---|---|---|
| China | $4.34 billion | Exim Bank of China |
| France | $593.75 million | Agence Française de Développement |
| Germany | $144.75 million | Kreditanstalt für Wiederaufbau (KfW) |
| Japan | $62.02 million | Japan International Cooperation Agency |
| India | $26.64 million | Exim Bank of India |
China Is Nigeria’s Biggest Lender By Far
The Republic of China alone accounts for 84% of Nigeria’s total bilateral debt. The loans being collected by Nigeria usually come through China’s Exim Bank and are often tied to infrastructure projects like railways, roads, and power.
What Happens If Nigeria Can’t Pay China Back?
Good question, and that’s where it becomes a serious question to ask.
There’s been a lot of concern that China could seize national assets in Nigeria if we default in paying back the money we’ve been collecting from them. But according to the DMO, that’s not how it works.
Nigeria Has a Debt Repayment Plan (Supposedly)
Here’s what the DMO had to say:
“Nigeria explicitly provides for debt service on its external and domestic debt in its annual budgets… a number of the projects being financed by the loans are either revenue-generating or have the potential to generate revenue.”
They also confirmed that:
- Every external loan is reviewed by legal officers from the Ministry of Justice.
- The Attorney-General’s approval is required before any loan agreement is signed.
So technically, China shouldn’t be able to just swoop in and grab the Lagos-Ibadan rail if we miss a payment—but the fear remains.
Final Thoughts: Should You Be Worried?
The short answer? Stay informed.
Nigeria’s rising debt profile is a big concern, not just for economists but for every Nigerian. It affects the economy, currency value, inflation, and even the level of foreign investment we attract. Whether these loans help us build or bury ourselves will depend on how wisely they’re managed going forward.
FAQs: How Much is Nigeria Owing in 2025
1. How much does Nigeria owe in 2025?
As of Q1 2023, Nigeria’s total public debt stood at ₦49.85 trillion. Updated figures for 2025 are yet to be published by the DMO.
2. Which country does Nigeria owe the most?
China is Nigeria’s largest bilateral creditor, with over $4.3 billion in loans.
3. Can China take over Nigerian assets if we default?
No. According to the DMO, Nigeria includes debt servicing in its annual budget, and loan agreements go through legal vetting.
4. What are bilateral and multilateral debts?
Bilateral debt is money owed to other countries; multilateral debt is owed to international financial institutions like the IMF or World Bank.
5. Why does Nigeria keep borrowing?
Primarily for funding infrastructure, bridging budget deficits, and economic development. However, the effectiveness of these borrowings is still a matter of debate.
