A new report by the African Export-Import Bank (Afreximbank) has revealed that just ten African countries, including Nigeria, collectively hold a staggering 69% of the continent’s total debt.
This finding highlights the financial burden carried by a handful of nations, with Nigeria among the biggest debtors due to its heavy reliance on external borrowing to fund infrastructure projects and bridge budget deficits.
According to Afreximbank, the massive debt concentration in these countries poses a significant risk to Africa’s economic stability, as global financial conditions tighten and interest rates remain high. Nigeria, for instance, has seen its debt servicing costs skyrocket, consuming a large portion of its revenue and limiting its ability to invest in critical sectors such as healthcare, education, and social services.
Experts warn that unless urgent measures are taken to boost revenue generation, renegotiate loan terms, and promote economic diversification, these debt levels could cripple future growth. The Nigerian government has maintained that its borrowing is strategic, focusing on productive ventures that will eventually stimulate economic expansion. However, citizens and financial analysts remain skeptical, calling for more transparency and accountability in the country’s debt management.
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