Nigeria's debt hits ₦159.35trn as AFRODAD urges African unity for better loan terms
Nigeria's public debt reached ₦159.35 trillion by March 31, 2026—₦87.40 trillion domestic and ₦71.95 trillion external—as African nations grapple with crushing debt costs. Countries spend $90 billion yearly servicing debt principal plus another $75 billion in extra interest due to high risk premiums on loans.
This debt burden directly affects Nigerians as government funds flow to creditors instead of health clinics, schools, and roads. Theo Jong of AFRODAD explains why loan terms disadvantage African countries: secrecy clauses prevent public scrutiny of agreements, disputes get settled in foreign courts (London, Paris, New York), and borrowing in hard currencies like dollars creates vulnerability when the naira depreciates.
African countries weaken their position by negotiating individually with creditors rather than presenting a united front. Jong points to Senegal's hidden debt inherited by new governments and resource-backed borrowing scandals in Mozambique and Chad where opaque terms led to crisis. Without transparency and coordinated negotiation, debt restructuring only offers temporary relief while setting up future borrowing under the same unfavorable terms.
The path forward requires political will for a common African stance to reform global debt rules. As Jong emphasizes: 'We need policies that serve African citizens rather than the global financial system.' Will you demand transparency from your representatives on loan agreements, or accept opaque deals that mortgage Nigeria's future?