Nigeria ranks as Africa’s third-largest external debtor, according to Afreximbank’s latest report. The country accounts for 8% of the continent’s total external debt, which has reached $1.16 trillion. The report urges economic diversification and sustainable borrowing to manage rising debt levels and improve financial stability across African nations.
Nigeria has been ranked the third-highest external debtor in Africa, according to the latest report by the Africa Export and Import Bank (Afreximbank). The report, titled African Debt Outlook: A Ray of Optimism, highlights that ten African countries collectively account for 69% of the continent’s total external debt.
South Africa leads the list with 14% of the debt burden, followed by Egypt (13%), and Nigeria (8%). Other nations on the list include Morocco, Mozambique, Angola, Kenya, Ghana, Côte d’Ivoire, and Senegal. The bank attributes Africa’s rising debt levels to a combination of limited domestic financial markets, high interest rates, and growing foreign exchange demands for imports.
Afreximbank noted that Africa’s total external debt reached $1.16 trillion in 2023 and is expected to rise to $1.17 trillion in 2024, with projections hitting $1.29 trillion by 2028. The report underscores that 75% of Africa’s debt is long-term, highlighting the continent’s financing needs for infrastructure and development projects.
To manage debt burdens, Afreximbank advises nations to diversify their economies and adopt sustainable borrowing practices. It recommends that Nigeria invest in agriculture and manufacturing to reduce dependency on oil revenues. Strengthening debt management institutions, improving transparency, and implementing robust social safety nets are also suggested measures.
While Africa’s debt levels remain high, Afreximbank sees signs of stabilization, attributing it to macroeconomic improvements and better access to capital markets. However, the bank urges governments to prioritize fiscal discipline and transparency to ensure long-term sustainability.
