‘Invest in agriculture, manufacturing’, Afreximbank advises Nigeria

This is as it listed the country alongside nine other African countries, as being responsible for 69 per cent of the continent’s total external debt stock.

The report, African Debt Outlook: A Ray of Optimism, placed the country among the top three most indebted countries, with 8 per cent of Africa’s total external debt.

South Africa was identified as the largest debtor with 14 per cent of Africa’s external debt, followed by Egypt at 13 per cent.

Morocco and Mozambique each account for 6 per cent, while Angola holds 5 per cent. Kenya and Ghana have 4 per cent each, and Côte d’Ivoire and Senegal hold 3 per cent each.

The report attributes the high levels of debt to external borrowing driven by underdeveloped financial markets, volatility in foreign exchange earnings, and the need for infrastructure financing.

It read, “In the first half of 2024, ten African nations constituted 69 percent of the continent’s total external debt stock, up from 67 percent in 2023. The countries leading this metric are South Africa (14 percent), Egypt (13 percent), Nigeria (8 percent), Morocco (6 percent), Mozambique (6 percent), Angola (5 percent), Kenya (4 percent), Ghana (4 percent), Côte d’Ivoire (3 percent), and Senegal (3 percent).”

Nigeria remains a key player in international capital markets, issuing a $2.2 billion Eurobond in December 2024 to manage debt obligations.