Nigeria TV Info 

Debt: World Bank Urges Nigeria, Others to Rethink Exports Amid Rising Debt Risks

The World Bank has sounded a warning to Nigeria and other Sub‑Saharan African countries to diversify exports and implement fiscal reforms as rising public debt threatens economic stability. According to the Bank’s latest Africa’s Pulse report, Nigeria’s total public debt rose to about ₦152.39 trillion (US$99.65bn) in Q2 2025, up from ₦149.38tn in Q1, driven by persistent budget deficits and continued borrowing.

The Bank’s analysis highlights that many low‑ and middle‑income economies in the region have seen external debt grow faster than GDP and exports since 2015, leaving fiscal space squeezed and public spending on health, education, and infrastructure constrained. High interest payments and principal repayments are crowding out development priorities, while debt service ratios remain elevated.

In Nigeria’s case, the government’s plan to borrow ₦17.89tn in 2026 and recent approvals for ₦1.15tn in domestic loans reflect ongoing fiscal pressures. The World Bank insists that deeper export diversification beyond oil — including agriculture and manufacturing — and stronger revenue mobilisation are essential to stabilise debt dynamics and support sustainable growth.

The report also noted that Sub‑Saharan African nations will collectively pay about US$20bn in external interest in 2025, much of it to private creditors and China, underscoring the high cost of borrowing and the need for strategic economic planning.

Analysts say that boosting non‑oil exports and improving competitiveness under regional agreements like AfCFTA could help reduce reliance on debt and build foreign exchange buffers. Still, reforms around fiscal transparency, debt management, and institutional strength are needed to reverse vulnerabilities.