Nigeria Faces $6.4bn Eurobond Repayment Burden, World Bank Warns

Nigeria is expected to face a $6.4 billion sovereign Eurobond repayment burden between 2024 and 2030, placing the country among the three largest repayment exposures in sub-Saharan Africa, according to the World Bank.

The disclosure was contained in the World Bank’s October 2026 Africa Economic Update, titled “Building AI Readiness,” which examined the growing debt-servicing and refinancing challenges confronting African economies.

According to the report, South Africa has the largest Eurobond repayment obligation during the period, with $11.8 billion due, followed by Ghana and Nigeria, with $6.4 billion each. Angola ranks next with $3.9 billion.

The World Bank estimated that about $43.6 billion in sovereign Eurobond principal would mature across 13 sub-Saharan African countries between 2024 and 2030, after accounting for bond buybacks and other liability-management operations completed through August 2026.

Nigeria’s $6.4 billion obligation represents approximately 14.7 per cent of the region’s total repayment burden.

Combined, South Africa, Ghana and Nigeria account for about $24.6 billion, representing more than half of the total maturities expected during the period.

Other countries facing significant repayment obligations include Angola with $3.9 billion, Kenya with $3.2 billion, Côte d’Ivoire with $2.8 billion and Zambia with $2.2 billion.

The repayment pressure comes at a time when borrowing costs for Nigeria and other African countries have risen considerably following the global monetary tightening cycle that began in 2022.

The World Bank reported that sub-Saharan African governments issued about $122 billion in sovereign Eurobonds through 158 transactions between 2015 and August 2026.

Nigeria was the region’s second-largest issuer during the period, raising approximately $20 billion through 18 transactions.

South Africa led with $23.7 billion raised through 15 transactions, while Angola raised $15.8 billion, Côte d’Ivoire $15 billion, Ghana $12.6 billion and Kenya $12.2 billion.

However, access to international capital markets became significantly more difficult after global interest rates increased in 2022.

The World Bank said Nigeria, Angola and South Africa were the only sub-Saharan African sovereigns able to issue Eurobonds that year.

Market access gradually improved in 2024, with Nigeria raising $2.2 billion, while South Africa raised $3.5 billion, Côte d’Ivoire $2.6 billion and Kenya $1.5 billion.

Despite the renewed access, the cost of borrowing was substantially higher.

Nigeria’s 2024 Eurobond issuances carried coupons of 9.6 per cent and 10.4 per cent, about three percentage points higher than comparable bonds issued in 2021.

The World Bank warned that higher borrowing costs could worsen fiscal pressures, even when countries successfully refinance their maturing debt.

It noted that refinancing helps governments manage immediate repayment pressures but could result in significantly higher debt-service costs over several years, leaving governments with less room to fund other priorities.

The report also observed that refinancing had become the main strategy used by many African countries to deal with maturing Eurobonds rather than paying the obligations directly from government revenues.

Kenya, for example, refinanced most of a $2 billion Eurobond that matured in 2024 by issuing $1.5 billion in new debt, alongside budgetary resources.

The new borrowing carried a yield of 10.4 per cent, compared with 6.9 per cent on the original bond.

Ghana addressed its debt obligations through a debt exchange completed in October 2024, while Ethiopia restructured its $1 billion debut Eurobond after defaulting in late 2023.

The World Bank said debt maturity pressures would remain significant across the region, with about $6.6 billion expected to mature in 2027 and $7.5 billion in 2029.

The bank also expressed concern about the shorter maturity periods of many Eurobonds issued during the 2024–2026 market reopening.

While bonds issued before the COVID-19 pandemic commonly had maturities of 10 to 12 years, many recent issues have maturities of only five to six years.

According to the World Bank, the combination of shorter repayment periods and higher interest rates could cause refinancing pressures to return more quickly.

The institution further warned that repeated refinancing could gradually reduce governments’ fiscal space as debt-service costs continue to rise.

Beyond Eurobonds, the World Bank said public and publicly guaranteed external debt-service payments across sub-Saharan Africa had remained elevated at between 1.6 and 1.7 per cent of gross domestic product since 2021.

It warned that rising interest and principal payments were taking up government revenues that could otherwise be used to finance infrastructure, human capital development and social protection programmes.