Nigeria’s net foreign liability position expanded by $7.5 billion to reach $90.2 billion in 2025, driven by a faster rise in foreign investors’ claims on domestic assets than the country’s own investments abroad.
The data, reported by The Punch, highlights the deepening external imbalances facing Africa’s largest economy as it navigates a period of fiscal consolidation and currency volatility.
With debt servicing obligations already consuming a significant portion of total revenue, analysts warn that these costs could soon reach 90% of government income.
The widening liability gap underscores the mounting pressure on the federal government’s balance sheet.
With debt servicing obligations already consuming a significant portion of total revenue, analysts warn that these costs could soon reach 90% of government income.
This trajectory leaves little fiscal headroom for public investment or social spending, forcing policymakers to prioritize debt management over growth initiatives.
The surge in foreign liabilities coincides with a broader tightening of monetary conditions.