posted 29th May 2025
Nigeria Slammed for Mismanaging $45.78 Billion External Debt Amid Corruption Allegations
Lagos, Nigeria – 29 May 2025 – Nigeria’s external debt stock, which stood at $45.78 billion as of 31 December 2024, has come under intense scrutiny as critics accuse the government of failing to utilise these funds effectively, instead funnelling significant portions into corrupt practices. The Debt Management Office (DMO) report, which details the country’s borrowing from multilateral, bilateral, and commercial sources, has reignited debates over fiscal responsibility and governance.
The report reveals that multilateral institutions, such as the World Bank Group ($16.56 billion) and the African Development Bank Group ($2 billion), account for 48.75% of the debt, while Eurobonds contribute 37.83% ($17.32 billion). Bilateral loans, predominantly from China’s Exim Bank ($5.06 billion), make up 13.30%. Despite the substantial sums borrowed, ostensibly for development projects, infrastructure, and economic stabilisation, there is little tangible progress to show for it, critics argue.
Anti-corruption watchdogs and economic analysts have long accused Nigerian officials of siphoning off borrowed funds through inflated contracts, ghost projects, and outright embezzlement. A 2024 Transparency International report highlighted Nigeria’s persistent struggle with corruption, ranking it poorly on its Corruption Perceptions Index. Funds meant for critical sectors like education, healthcare, and infrastructure are often misappropriated, leaving citizens to grapple with crumbling roads, underfunded schools, and inadequate medical facilities.
For instance, a $5 billion loan from the Exim Bank of China, intended for railway projects, has been mired in controversy, with sections of the rail network remaining incomplete years after the funds were disbursed. Similarly, Eurobond proceeds, which form a significant chunk of the debt, have been linked to questionable financial dealings, including allegations of money laundering by senior officials. The lack of transparency in how these funds are allocated and spent has eroded public trust and drawn sharp criticism from international creditors.
The consequences of this mismanagement are stark. Nigeria’s debt servicing costs have soared, consuming a disproportionate share of the national budget and leaving little for development. The reliance on Eurobonds, which are subject to foreign exchange fluctuations, has further exposed the country to economic risks, especially with the naira’s ongoing depreciation. Meanwhile, ordinary Nigerians bear the brunt of this fiscal irresponsibility, facing rising poverty levels and a cost-of-living crisis.
Civil society groups have called for greater accountability, urging the government to implement stricter oversight mechanisms and prosecute those involved in corrupt practices. “It’s a disgrace that billions of dollars in loans, meant to uplift Nigerians, are instead lining the pockets of corrupt officials,” said Chidi Okonkwo, an activist with the Lagos-based Anti-Corruption Network. “The government must prioritise transparency and ensure these funds are used for their intended purpose.”
As Nigeria continues to borrow to meet its financial obligations, the failure to address corruption and mismanagement risks plunging the country deeper into debt, with future generations left to shoulder the burden of today’s reckless governance.
