Nigeria’s Private Sector Foreign Debt Surges by 179.6% to $54.5bn – World Bank Report

A new report by the World Bank has revealed that Nigeria’s private sector foreign debt has significantly increased, rising by 179.6% to $54.48bn in 2025 from $19.49bn in 2018. This substantial increase in debt is a concern for many, as it could potentially hinder the growth and development of the Nigerian private sector. According to the report, the increase in debt is a result of various factors, including increased borrowing by companies to finance their operations and expand their businesses. While the World Bank did not provide a detailed breakdown of the sectors that contributed to this increase, it is important to note that the debt burden could impact different sectors differently. For instance, sectors with high levels of debt could face challenges in repaying their loans, potentially affecting their ability to invest and grow. It is also worth noting that the increase in foreign debt comes at a time when Nigeria is facing economic challenges, including high inflation and a weak naira. The government will need to carefully manage the debt situation to ensure that it does not further exacerbate these challenges. The World Bank has not provided any recommendations on how to address the increase in debt, but it is likely that the government will need to implement policies to promote economic growth and attract foreign investment. As the debt burden continues to grow, it is crucial for the government to take proactive measures to ensure the sustainability of the private sector and the overall economy.