Nigeria's net foreign liabilities climb to $90.2bn

Nigeria's net foreign liability position has grown by $7.5 billion, reaching $90.2 billion in 2025, as foreign claims on Nigerian assets outpaced the nation's investments abroad. Data from the Central Bank of Nigeria (CBN) indicates a rise in foreign portfolio and direct investment liabilities, partially offset by growth in Nigeria's reserve assets and holdings by Nigerian residents.

The CBN's International Investment Position report reveals that Nigeria's net financial liabilities increased from $82.7 billion in 2024 to $90.2 billion in 2025. This position is based on external assets of $125.6 billion and foreign liabilities totaling $215.8 billion. Unlike the Balance of Payments, which tracks flows, the IIP measures the stock of external financial assets and liabilities at a specific point in time.

The increase in external liabilities was primarily driven by a $10.1 billion rise in portfolio investment liabilities, largely due to foreign investments in government debt instruments like OMO bills, attracted by Nigeria's high interest rates. Direct investment liabilities also grew by $6.7 billion, signaling continued foreign interest in Nigerian companies and subsidiaries.

On the asset side, Nigeria's reserve assets saw a significant jump of $5.6 billion, enhancing external buffers. Additional growth in Nigerians' direct, portfolio, and other foreign assets contributed another $3.3 billion. However, the expanding liability position underscores Nigeria's increasing reliance on foreign capital inflows. Economists suggest that attracting more long-term foreign direct investment, boosting non-oil export earnings, and maintaining stronger reserve accumulation are crucial for the country's external sustainability.