NIGERIA faces $6.4 billion in sovereign Eurobond principal repayments between 2024 and 2030, placing it among sub-Saharan Africa’s largest borrowers faced with mounting debt maturities, as higher international interest rates threaten to increase the cost of refinancing government obligations.
The World Bank disclosed this in its October 2026 Africa Economic Update, titled Building AI Readiness, which examined the region’s growing debt-servicing obligations, refinancing risks and the fiscal consequences of borrowing from international capital markets.
Nigeria’s projected repayment exposure is the joint third-largest in sub-Saharan Africa, alongside Ghana, behind South Africa’s $11.8 billion. The figures reflect outstanding Eurobond principal scheduled to mature over the 7-year period, after accounting for buybacks and other liability-management operations completed through August 2026.
The report puts the total sovereign Eurobond principal falling due across 13 sub-Saharan African countries at approximately $43.6 billion. Nigeria’s share represents about 14.7 percent of the regional total, underscoring the country’s exposure to refinancing pressures as its existing foreign currency debt approaches maturity.
Together, South Africa, Nigeria and Ghana account for $24.6 billion, or approximately 56.4 percent, of the region’s projected Eurobond repayments.
Other countries facing significant obligations include Angola, with $3.9 billion; Kenya, $3.2 billion; Côte d’Ivoire, $2.8 billion; and Zambia, $2.2 billion.
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Higher interest rates raise cost of borrowing
The repayment burden comes as African governments face more expensive financing conditions following the global monetary tightening cycle that began in 2022.
Rising interest rates in major economies increased the returns investors demanded for holding emerging market debt, making international borrowing more expensive for countries like Nigeria with weaker credit ratings and elevated fiscal risks.
Nigeria has increasingly relied on international capital markets to raise foreign currency for government financing and manage its debt obligations. However, the cost of accessing those markets has risen substantially, increasing the amount the government must commit to interest payments.
According to the World Bank, Nigeria raised $20 billion through 18 sovereign Eurobond transactions between 2015 and August 2026, making it the second largest issuer in sub-Saharan Africa during the period.
South Africa led with $23.7 billion raised through 15 transactions. Angola followed with $15.8 billion, Côte d’Ivoire with $15 billion, Ghana with $12.6 billion and Kenya with $12.2 billion.
Across the region, sovereign Eurobond issuance reached approximately $122 billion through 158 transactions during the period.
The concentration of issuance among a handful of countries highlights the importance of international bond markets to African governments, but also exposes them to shifts in global investor sentiment, borrowing costs and currency movements.
Nigeria’s 2024 Eurobonds carried higher interest rates
Nigeria’s return to the international bond market in 2024 illustrated the higher price governments have had to pay to secure foreign financing.
The World Bank said Nigeria’s 2024 Eurobond issuances carried coupon rates of 9.6 percent and 10.4 percent, approximately 300 basis points above comparable issuances in 2021.
A basis point is one-hundredth of a percentage point. Therefore, an increase of 300 basis points translates to a three-percentage-point rise in borrowing costs.
Across sub-Saharan Africa, yields on bonds issued during the market reopening in 2024 ranged from 7.1 percent to 10.4 percent, about 300 to 500 basis points above comparable levels before the 2022 tightening cycle.
The higher rates have implications for Nigeria’s public finances because interest payments compete with spending on infrastructure, healthcare, education, security and social protection.
As existing Eurobonds mature, the government may have to issue new debt at prevailing market rates if it cannot meet the obligations from available revenue or FX resources.
That could increase debt servicing costs even if the government successfully replaces maturing bonds with new borrowing.
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Refinancing offers relief but increases long-term pressure
The World Bank warned that refinancing can reduce immediate repayment pressure but may create a more expensive debt burden over time.
“Although refinancing operations help ease near-term rollover pressures, they also lock in higher debt service costs for years to come, increasing fiscal burdens and reducing policy space even as immediate refinancing risks subside,” the report said.
Refinancing involves raising new debt to repay existing obligations as they fall due. While the approach can prevent a sudden drain on government finances, it does not eliminate the underlying debt.
Instead, it transfers the repayment obligation into the future and may increase the total interest bill if the replacement borrowing carries a higher rate.
The World Bank said refinancing had become the principal strategy adopted by many African governments facing Eurobond maturities, rather than relying entirely on government revenues to repay their obligations.
Kenya, for instance, refinanced most of a $2 billion Eurobond that matured in 2024 by issuing $1.5 billion in new debt and using budget resources to cover the balance.
The replacement borrowing carried a yield of 10.4 percent, compared with a 6.9 percent coupon on the original bond, illustrating how refinancing can substantially increase financing costs.
Ghana took a different route, completing a debt exchange in October 2024, while Ethiopia restructured its $1 billion debut Eurobond after defaulting in late 2023.
These experiences demonstrate the difficult choices facing African governments as they attempt to meet FX obligations without placing additional pressure on already constrained budgets.
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Shorter maturities could bring repayment pressure back sooner
Beyond higher interest rates, the World Bank identified the shorter maturity periods of recently issued Eurobonds as another source of concern.
Many bonds issued during the 2024–2026 reopening of international capital markets have maturities of 5 to 6 years, compared with the 10- to 12-year tenors commonly available before the COVID-19 pandemic.
Shorter maturities mean governments must repay or refinance their borrowings sooner, potentially forcing them to return to international markets more frequently.
This increases exposure to changes in global interest rates, investor appetite and sovereign credit risk.
The World Bank warned that the combination of shorter repayment periods and higher borrowing costs could create a recurring refinancing cycle in which governments continually replace maturing debt while paying more to maintain access to credit.
“For several Sub-Saharan African sovereigns, Eurobond financing increasingly resembles a refinancing cycle in which successive rollovers address near-term maturities but gradually erode fiscal space through higher debt service costs,” the bank stated.
For Nigeria, this creates a policy challenge as refinancing may provide immediate relief, but repeated borrowing at elevated rates could leave less money available for development spending in subsequent years.
Eurobond maturities expected to remain elevated
The pressure is not limited to Nigeria’s $6.4 billion exposure. The World Bank expects substantial repayment obligations across the region to persist over the coming years.
Following liability management operations that reduced the amount falling due in 2028 to approximately $5.5 billion, the largest remaining concentrations are $6.6 billion in 2027 and $7.5 billion in 2029.
These repayment requirements could intensify competition among African governments seeking access to international capital markets, particularly if global borrowing costs remain elevated or investors become more cautious about emerging market debt.
Countries that cannot refinance on favourable terms may have to draw on foreign exchange reserves, increase domestic borrowing, reduce expenditure or negotiate changes to their repayment arrangements.
For Nigeria, the challenge is particularly important because Eurobonds are denominated in foreign currency. The government must therefore secure sufficient FX resources to meet principal and interest payments, either directly or through refinancing arrangements.
Debt servicing threatens development spending
The World Bank also raised concerns about the broader fiscal impact of rising debt service obligations across sub-Saharan Africa.
Public and publicly guaranteed external debt service has remained elevated at approximately 1.6 to 1.7 percent of regional gross domestic product since 2021.
As governments devote more resources to interest and principal payments, fewer funds may be available for infrastructure, education, healthcare, job creation and social protection.
For Nigeria, the implications extend beyond the ability to meet scheduled Eurobond repayments. The government must also balance debt obligations against demands for public investment and essential services.
The $6.4 billion maturity exposure does not mean Nigeria must repay the entire amount from current budget revenues or FX reserves, as some obligations may be refinanced. However, replacing the debt could prove more expensive than when the original bonds were issued.
The central concern is not only whether Nigeria can meet its repayment obligations, but also the cost of doing so and the effect on public finances.
Due to the high cost of borrowing from international
