‘Nigeria ranks third among Africa’s top 10 debtors’
The Africa Export and Import Bank (Afreximbank) has said Nigeria is one of the 10 African countries that together account for 69 per cent of the continent’s total external debt.
In its latest report titled ‘African Debt Outlook: A Ray of Optimism,’ Afreximbank said the continent’s external debt levels remain elevated, primarily due to the limited development of domestic financial markets and high interest rates. The bank further highlighted challenges and opportunities facing African nations in managing their debt.
“In the first half of 2024, 10 African nations constituted 69 per cent of the continent’s total external debt stock, up from 67 percent in 2023,” the report reads.
“The countries leading are South Africa (14%), Egypt (13%), Nigeria (8%), Morocco (6%), Mozambique (6%), Angola (5%), Kenya (4%), Ghana (4%), Côte d’Ivoire (3%), and Senegal (3%).
“The growing demand for foreign exchange to finance imports has further exacerbated external indebtedness, fueled by reliance on aid, concessional loans from multilateral institutions, and competitive rates offered by private creditors.
“Since 2008, the external debt of African countries has escalated significantly, reaching approximately US$ 1.16 trillion and representing 60 percent of the region’s total public debt stock as of 2023. Projections indicate a slight increase to US$ 1.17 trillion in 2024, with sustained growth anticipated, potentially reaching US$ 1.29 trillion by 2028.
