Fresh data from the Debt Management Office (DMO) has revealed that out of the $10 billion external loans secured by the current administration, only about $5 billion has actually been disbursed. The loans were sourced from multilateral organisations, regional lenders, and the International Capital Market through Eurobonds.
The administration’s borrowing trail began in October 2023, when Nigeria signed a €103.9 million facility with Agence France De Development to fund the Investment in Digital and Creative Economy (i-DICE) project. The loan, pegged at 3.5% interest with a seven-year moratorium, will run until October 2043. Yet, less than €4 million has so far been released.
In the defence sector, a €425.7 million agreement was signed with Italian lender UniCredit S.p.A for the supply of six F.A. Aircraft under Tranche A. With an interest rate of 3.85% and maturity in April 2037, the deal remains completely undisbursed to date.
Nigeria also secured €883.5 million from the China Development Bank for the Kaduna–Zaria Rail project in December 2023. The loan carries a 4.33% interest rate and a five-year grace period, with repayment stretching to April 2040. So far, €245.2 million ($265 million) has been released.
That same month, the World Bank’s International Bank for Reconstruction and Development (IBRD) approved a $449 million facility for Power Sector Recovery. With a 6.27% interest rate and maturity in 2058, only $1.1 million has been disbursed.
On the same day, two other loans were signed with the International Development Association (IDA) — XDR 521.3 million for the Adolescent Girls Initiative for Learning and Empowerment (AGILE-AF), and XDR 371.2 million for the Nigeria for Women Scale-Up Project. Both came at 2% interest with repayment due in 2053. While the AGILE project has received about $54.8 million so far, the Women Scale-Up facility remains largely untouched.
Similarly, the Islamic Development Bank agreed to finance the i-DICE project with ISD 3.56 million at 5.46% interest, maturing in December 2046. Records show only ISD 703,229 (about $932,000) has been disbursed.
With several agreements still at the undisbursed stage, analysts say Nigeria’s debt service obligations could mount quickly once moratoriums end, raising concerns over repayment sustainability.
