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…owes N15trn

Nigeria is ranked 5th among African countries most indebted to China, data compiled by Boston University’s Global Development Policy Center, has revealed.

According to the data, the country’s debt to China stands at $9.6 billion. Specifically, Angola is ranked first in Africa with the country’s outstanding loan to China put at $46 billion; followed by Ethiopia ($14.5 billion); Egypt ($9.7 billion); Kenya ($9.6 billion) and Nigeria ($9.6 billion) in 2nd, 3rd, 4th and 5th, respectively.

In 6th, 7th, 8th, 9th and 10th positions are Zambia ($9.5 billion), Soth Africa ($6.9 billion), Sudan ($6.3 billion), Ghana($6.1 billion) and Cameroon ($5.9 billion.).

The Boston University report revealed that China’s financial engagement with Africa has grown significantly over the past two decades, primarily through infrastructure-focused loans.

These loans have helped build roads, railways, power plants in several African countries, but they have also raised questions about debt sustainability, repayment risks, and the long-term autonomy of African economies. The loan agreements between China and African countries were over a 13-year period, from 2000 to 2023.

New Telegraph reports that President Bola Tinubu recently wrote to the National Assembly seeking its approval for the country to obtain over $21.5 billion in external loans as part of the government’s 2025–2026 Borrowing Plan.

Reacting to the request in a report released last week, analysts at Cowry Asset Management Limited warned that the planned fresh borrowing poses a danger to the country’s fiscal stability.

According to the analysts, the loan request contradicts the government’s earlier pledge, “to shift towards Foreign Direct Investments (FDI) and attract equity investors in order to reduce reliance on debt.”

The report partly read: “Recently, President Bola Tinubu submitted a fresh request to the National Assembly, seeking approval for over $21.5 billion in external loans as part of the government’s 2025–2026 Borrowing Plan. This request is intended to plug financing gaps and support economic growth ambitions.

Alongside the $21.5 billion plan, the government is also pursuing additional borrowings amounting to €2.2 billion (approximately $2.5 billion) and 15 billion yen (about $103.97 million) from foreign sources, as well as $2 billion in naira-denominated debt from the domestic market.

“While the government had previously highlighted its intention to shift towards foreign direct investments (FDI) and attract equity investors in order to reduce reliance on debt, the latest borrowing plans appear to contrast sharply with that narrative—raising the cost of borrowing and placing increased pressure on fiscal stability.

“For context, since assuming office in May 2023, the Tinubu administration has already secured $7.2 billion in external loans— entirely from the World Bank.