Nigeria is poised to be one of the leading African nations grappling with significant debt repayment obligations in 2026, as total external debt repayments across the continent approach $90 billion.
This is according to a recent report by S&P Global Ratings.
The analysis highlights rising debt pressures on African governments, with hard-currency repayment schedules straining external financial buffers and increasing refinancing risks.
The report, published on Monday, reveals that expected government external debt repayments in 2026 are more than three times the levels seen in 2012, reflecting a sharp rise in debt servicing challenges over the last decade.
This surge underscores the growing vulnerability of African countries to rollover risks as they strive to meet maturing obligations amid a complex global financial environment.
What the data is saying
S&P Global estimates that rated African sovereigns will face approximately $90 billion in principal external debt repayments in 2026.
- Nearly one-third of this sum—about $27 billion—relates to Egypt, which holds the continent’s largest debt burden.
- Angola, South Africa, and Nigeria follow as major debtors with substantial repayment responsibilities.
- Nigeria, while not the largest debtor, remains a key player among African countries with significant debt repayments.
- The report notes wide variation across countries in the share of total annual debt service, with large increases often reflecting persistent fiscal deficits and rising rollover risks.
These data points to the growing challenge African governments face in managing their external debts amid changing market sentiments and fiscal pressures.
More insights
Despite the heavy repayment burdens, S&P points to cautious optimism in Africa’s sovereign credit outlook. Sovereign ratings have improved to their highest average levels since late 2020, largely due to ongoing reforms and economic growth improvements.
- Structural reforms to sustainably lower debt burdens are expected to take longer to implement.
- The easing of global financial conditions has enabled several African countries, including Nigeria, to re-access international capital markets successfully.
However, some African nations face tougher borrowing conditions, with countries like the Republic of Congo offering unsustainable double-digit yields to attract investors.
As a result, many governments are turning to liability management tools such as bond buybacks, debt exchanges, and maturity extensions to reduce refinancing risks.
Countries actively using these strategies include Côte d’Ivoire, Benin, Uganda, the Republic of Congo, Mozambique, Kenya, and South Africa.
What you should know
S&P projects Africa’s average real GDP growth at 4.5% in 2026, with fiscal deficits expected to narrow modestly to around 3.5% of GDP on average.
Despite this growth, government debt levels are forecast to remain elevated at approximately 61% of GDP.
- This data highlights the ongoing challenge African governments face in balancing economic expansion with debt sustainability.
- Nigeria’s Debt Management Office reported that the country’s total public debt reached N152.40 trillion ($369 billion) as of June 30, 2025.
- This is an increase from N149.39 trillion ($362 billion) at the end of March 2025.
- The rising debt stock underlines the critical need for effective debt management policies in Nigeria.
- Nigeria raised $2.35 billion in a Eurobond issuance in November 2025, attracting a record $13 billion in investor demand—the largest ever for the country.
