As the International Monetary Fund (IMF) releases its updated list of countries with the highest outstanding credit as of August 29, 2025, several African nations dominate the top spots.
Egypt, Côte d’Ivoire, and Kenya feature prominently, but one major economy is notably absent: Nigeria, Africa’s largest economy.
Nigeria fully repaid its $3.4 billion IMF loan in April 2025 but will continue to pay annual SDR charges of about $30 million until 2029.
These charges are not for the loan principal but are fees on Nigeria’s SDR holdings, which are separate reserve assets held by the IMF.
IMF Debt Data: Africa’s Top Debtors
According to the IMF, Egypt leads the African chart with Special Drawing Rights (SDRs) of 7.18 billion (approximately KSh 1.33 trillion) in outstanding loans.
This staggering amount places Egypt among the highest global debtors. Côte d’Ivoire, Kenya, Angola, and Ghana follow closely in the rankings, all having borrowed heavily to support development projects, budget support, and economic stabilisation efforts amid challenging global conditions.
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These loans have been used to fund essential infrastructure projects and social development programmes and to maintain economic stability, especially in the wake of COVID-19, inflationary pressures, and the ongoing geopolitical instability resulting from the war in Ukraine.
While these debts have played a crucial role in sustaining development and stabilising national economies, they also represent a growing financial burden for these nations, some of which already face difficulties in servicing these debts.
Nigeria’s Debt Landscape
However, despite facing similar economic shocks, Nigeria is conspicuously absent from this high-debt group. According to the IMF’s updated report, the country has managed to avoid excessive borrowing and has pursued a more conservative approach to external financing.
This is in stark contrast to many other African nations that have opted for substantial foreign loans to cover fiscal deficits and stimulate economic recovery.
As of 2024, Nigeria’s external debt stood at around $45 billion, a figure much lower than that of countries like Egypt, Kenya, or Ghana.
While this debt is still significant, Nigeria’s external borrowing strategy appears more measured. This could be due, in part, to Nigeria’s domestic debt market, which has provided a significant alternative source of financing.
The country has increasingly relied on domestic borrowing, issuing sovereign bonds to fund its infrastructure and budget needs rather than seeking large loans from international creditors.
Nigeria’s Debt Sustainability and Financing Strategy
Nigeria’s relatively low position in the IMF debt rankings can also be attributed to the government’s cautious approach to debt sustainability.
Since the 2015-2017 oil price crash, the Nigerian government has made conscious efforts to reduce its dependence on external financing by increasing the proportion of domestic debt in its fiscal mix.
The government has also been keen on enhancing revenue collection, notably through the Federal Inland Revenue Service (FIRS), and implementing key fiscal reforms aimed at improving the tax-to-GDP ratio.
Despite these efforts, Nigeria continues to face challenges in financing its budget deficits, which are primarily driven by unsustainable public sector wage bills, subsidies, and the need for capital investment in infrastructure.
The Petroleum Industry Act (PIA), which aims to increase Nigeria’s oil revenues, and the Finance Act are central to the country’s strategy to improve public finances and reduce the need for external borrowing.
