Report: Nigeria, 9 other African countries hold 69% of Africa’s debt, see full list

• Ten African countries, including Nigeria, are liable for 69% of the continent's full outer debt
• The others are South Africa, Egypt, Morocco, Mozambique, Angola, Kenya, Ghana, among others
• Africa's outer indebtedness levels are inactive high, owed mostly to precocious involvement rates and underdeveloped section fiscal markets

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

A survey by Afreximbank Research has shown that Nigeria is 1 of the apical 10 African nations that unneurotic relationship for 69% of the continent's full outer debt.

Sixty-nine percent of each outer indebtedness connected the continent was held by 10 African nations. Photo Credit: FG
Source: UGC

The study, "African Debt Outlook: A Ray of Optimism," which was published successful precocious February, outlines the opportunities and difficulties African countries look successful managing their debt.

Ten African countries accounted for 69% of the continent's full outer indebtedness banal successful the archetypal fractional of 2024, up from 67% successful 2023, according to the Afreximbank Research report.

Countries with the highest indebtedness are listed below:

1. South Africa - 14%
2. Egypt -13%
3. Nigeria - 8%
4. Morocco - 6%
5. Mozambique - 6%
6. Angola - 5%
7. Kenya - 4%
8. Ghana - 4%
9. Côte d'Ivoire - 3%
10. Senegal - 3%

More connected the report

The study stated that the continent's increasing fiscal needs, which are mostly the effect of pressures from colonisation increase, are the main origin of this trend.

“Africa’s outer indebtedness levels stay elevated, chiefly owed to the constricted improvement of home fiscal markets and precocious involvement rates. The increasing request for overseas speech to concern imports has further exacerbated outer indebtedness, fuelled by reliance connected aid, concessional loans from multilateral institutions, and competitory rates offered by backstage creditors.“Since 2008, the outer indebtedness of African countries has escalated significantly, reaching astir $1.16tn and representing 60 per cent of the region’s full nationalist indebtedness banal arsenic of 2023. Projections bespeak a flimsy summation to $1.17tn successful 2024, with sustained maturation anticipated, perchance reaching $1.29tn by 2028.

Nigeria's indebtedness profile

The Debt Management Office reports that arsenic of September 30, 2024, Nigeria's full nationalist debt was N142.3 trillion, up 5.97 percent (or N8.02 trillion) from N134.3 trillion successful June 2024.

Due to accrued responsibilities to bilateral and multilateral creditors arsenic good arsenic sizable involvement payments connected commercialized loans, indebtedness servicing successful the archetypal 3 quarters of 2024 exceeded N7 trillion.

The larger problems that person led to Africa's mounting indebtedness load are further clarified by the Afreximbank Research. These see the costs of healthcare, education, and infrastructure improvement successful emerging nations, each of which sometimes telephone for important backing from loans and different indebtedness instruments.

According to the paper, aft the 2008 Great Financial Crisis, the total debt-to-GDP ratio accrued by 39.3 percent points, reaching 71.7% of GDP successful 2023.

High planetary involvement rates person made matters much analyzable and made indebtedness work much difficult, particularly successful airy of the important borrowing from non-traditional creditors specified arsenic backstage assemblage companies and caller bilateral partners.

Afreximbank concluded that African indebtedness exhibits signs of stabilisation successful the mean term, driven by macroeconomic tailwinds, reduced involvement rates, and improved entree to superior markets.

While challenges remain, the portion displays affirmative fiscal sustainability indicators arsenic it navigates the post-crisis betterment landscape.

Foreign countries, institutions Nigerian authorities owes $43bn

Legit.ng reported that Nigeria owes implicit $42 billion to overseas institutions and countries arsenic astatine September 30, 2024.

According to the information from the Debt Management Office (DMO), this sum represents unpaid debts accumulated from some contiguous and past authorities administrations.

Recall that the DMO clarified that President Bola Tinubu’s inherited indebtedness was N87 trillion, not N21 trillion, arsenic immoderate media reports claimed.

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Source: Legit.ng