The number of debtors backed by movable assets owing financial institutions in Nigeria declined significantly from 2017 to 2018.

Key takeaways:

  • The number of collateral-backed debtors fell by almost 50% from 2017 to 2018
  • The number of debtors began increasing consistently from 2019 to 2021
  • The highest post-2018 debt level was recorded in 2023, reaching 7,390, which is close to pre-2018 figures.
  • The decline in 2018 could indicate cautious borrowing or stricter regulations, while the rise afterward suggests a possible easing of credit access.

In 2017, the number of debtors backed by movable assets owing financial institutions stood at 8,338, but this figure plummeted drastically in 2018 to 4,273. Following this decline, the trend reversed, and the number of debtors rose steadily between 2019 and 2021, climbing back to 7,310. However, from 2021 to 2024, the numbers were unstable, rising and falling slightly.

Debtors include individual debtors, Large Businesses, Medium Businesses, Micro Businesses, and Small Businesses.

Source:

Central Bank of Nigeria (CBN)

Period:

2017 - 2024
HTML code to embed chart
Want a bespoke report?
Reach out
Tags
Related Insights

While Angola's debt service-to-GDP hits 68%, Algeria’s is 0.1%, showing huge variety in debt burdens
  • Angola and Ethiopia account for the highest debt service-to-GDP ratios in Africa, both exceeding 67%.
  • East Africa dominates the high debt-servicing bracket, with five countries among the top ten most burdened.
  • Algeria has the lowest debt service-to-GDP ratio on the continent at just 0.10%.
  • There’s a wide gap between the top and bottom debt service burdens, reflecting divergent fiscal paths across Africa.
  • Low debt servicing doesn’t automatically mean economic strength—it may reflect limited borrowing capacity.

While many other African nations face a high debt burden, Algeria's already low debt keeps falling to a projected 0.09% in 2025
  • Algeria’s debt service per GDP dropped from 0.77% in 2009 to a projected 0.09% in 2025.
  • The country’s debt service per GDP declined at a -11.9% CAGR from 2009–2025.
  • A high of 0.73% occurred in 2012 before the consistent decline resumed.
  • By 2015, the country's debt service fell to 0.27%, showing progress in reduction.
  • The lowest point is forecast for 2025, at 0.09% of GDP.
  • Algeria’s debt burden is among the lowest in Africa, contrasting with the rising trend in many other nations.
  • This low debt service level allows for greater fiscal flexibility in public spending and investment.

Nigeria's debt service per GDP increased from 0.7% in 2015 to 10.2% in 2024, with 2025 forecasted to reach 15.1%
  • Nigeria's debt service per GDP rose from 0.9% in 2009 to a projected 15.1% in 2025.
  • Overall CAGR from 2009 to 2025 is 17.8%.
  • President Muhammadu Buhari’s tenure saw the fastest growth (29.1% CAGR).
  • Under President Goodluck Jonathan, growth was slower (6.5% CAGR).
  • President Bola Ahmed Tinubu’s term so far shows a 27.6% CAGR.

Angola's debt burden reached a new peak in 2024, with its debt service hitting 68.3% of GDP
  • Debt service in Angola hit 68.3% of GDP in 2024.
  • Even with a projected fall to 67.7% in 2025, the debt burden remains high.
  • Between 2009 and 2025, the debt service ratio grew at a CAGR of 11.2%.
  • The ratio stayed below 15% from 2009 to 2014 before surging to 41.9% in 2016.
  • Angola has faced multiple spikes above 50% since 2019, showing recurring debt strain.
  • The sharp drop to 31.2% in 2022 was short-lived, followed by a steep increase.

POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form

A product of Techpoint Africa. All rights reserved