A total of 8 African countries have issued the sum of $15.7B in Eurobonds in thirteen months (Jan '24 - Jan '25)

Key takeaways:

  • African countries issued a total of $15.7 billion in Eurobonds, demonstrating continued reliance on external debt markets.
  • While the first ten months totaled $6.2 billion, November and December alone added $7.5 billion, marking a sharp increase.
  • The total issuance jumped from $6.2 billion in October to $10 billion in November and then $13.7 billion in December, showing a drastic shift in borrowing.
  • Eight African countries drove this activity, as the borrowing is concentrated among key economies.

African countries have been actively engaging in the Eurobond market, raising a total of $15.7 billion from January 2024 to January 2025. The cumulative issuance trend highlights a rise in borrowing, with significant jumps in the final months of 2024. November and December witnessed a sharp increase, reaching $10 billion and $13.7 billion, respectively, before peaking at $15.7 billion in January 2025. This trend suggests that many African economies are turning to international debt markets to finance economic growth, refinance existing debt, and address fiscal challenges.

Source:

Afreximbank

Period:

Jan 2024 - Jan 2025
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Borno records lowest domestic debt in North-East Nigeria at ₦22.3 billion in Q2 2025
  • The six North-Eastern states collectively owe around ₦450 billion in domestic debt as of Q2 2025.
  • Borno State maintains the lowest debt in the region at ₦22.3 billion, showing signs of controlled borrowing amid post-conflict rebuilding.
  • Bauchi State has the highest domestic debt burden of ₦143.6 billion, accounting for about 31% of the region’s total.
  • The top three states, Bauchi, Taraba and Gombe, collectively account for more than two-thirds of the zone’s total subnational debt stock.

In just six months, Nigeria spent over $2.3 billion servicing external debts
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  • Eurobond payments followed closely, with $687.8 million paid, reflecting Nigeria’s heavy reliance on commercial debt instruments.
  • Multilateral lenders like IDA and AfDB collectively received about $463 million, signalling continued exposure to concessional financing.
  • China’s share shrinking: Payments to Chinese lenders (EXIM + CDB) totalled $235.6 million, less than 11% of total outflows, suggesting reduced Chinese debt servicing in H1 2025.

Over 60% of Nigeria’s ₦1.7 trillion domestic debt service in Q2 2025 was spent on Federal Government Bonds
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  • Treasury bills followed: Payments on NTBs reached ₦537.9 billion, making up roughly 31% of the total.
  • Sukuk and promissory notes together cost ₦90.8 billion, reflecting Nigeria’s mix of infrastructure and settlement instruments.
  • Green and savings bonds remained minimal, together below ₦5 billion, showing limited traction for retail and sustainability-focused debt.

93% of Nigeria's public debt is owed by the Federal Government
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  • States’ share has more than halved, from 20.5% to 7.4% in six years.
  • Total public debt grew from $83.9 billion to $99.7 billion, peaking at $113.4 billion in 2023.
  • Nigeria’s debt burden is increasingly concentrated at the centre, amplifying federal repayment risks and reducing fiscal independence for states.

60% of Nigeria's ₦152.4 trillion public debt is owed to domestic lenders
  • Total public debt hits ₦152.4 trillion, marking another milestone in Nigeria’s expanding debt profile.
  • Domestic debt leads at ₦80.5 trillion, making up about 53% of total obligations.
  • External debt stands at ₦71.8 trillion, equivalent to roughly 47%, reflecting Nigeria’s ongoing exposure to foreign lenders.
  • The data signals growing fiscal dependence on local markets, as authorities seek to limit exchange rate risks while still financing deficits.

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