By Sandra Kenneth
Nigeria is facing a $6.4 billion sovereign Eurobond principal repayment wall between 2024 and 2030, ranking the country joint third alongside Ghana for the largest debt-servicing exposures in sub-Saharan Africa.
According to the World Bank’s October 2026 Africa Economic Update, titled Building AI Readiness, rising interest rates and short-term refinancing cycles are severely squeezing fiscal space across the continent.
The report highlights that 13 sub-Saharan African nations face a collective $43.6 billion Eurobond repayment wall through 2030—even after accounting for bond buybacks and debt-management operations completed through August 2026.
Nigeria’s $6.4 billion commitment accounts for roughly 14.7% of the region’s overall maturity burden. Together with South Africa ($11.8 billion) and Ghana ($6.4 billion), the three nations account for $24.6 billion, or 56% of the continent’s total maturing debt. Other major debtors include Angola ($3.9 billion), Kenya ($3.2 billion), Côte d’Ivoire ($2.8 billion), and Zambia ($2.2 billion).
High Capital Market Footprint
Between 2015 and August 2026, sovereign Eurobond issuances across sub-Saharan Africa reached $122 billion across 158 transactions, with six nations driving more than 80% of total activity.
Nigeria emerged as the region’s second-largest issuer during this period, raising $20 billion across 18 transactions. South Africa led the region with $23.7 billion, followed by Angola ($15.8 billion), Côte d’Ivoire ($15 billion), Ghana ($12.6 billion), and Kenya ($12.2 billion).
While rising global interest rates in 2022 temporarily shut out most African governments from international capital markets—with only Nigeria, South Africa, and Angola able to issue bonds that year—access gradually reopened in 2024. During that recovery, Nigeria successfully raised $2.2 billion, alongside issuances from South Africa ($3.5 billion), Côte d’Ivoire ($2.6 billion), and Kenya ($1.5 billion).
Higher Costs, Narrower Margins
However, returning to international capital markets has come at a steep premium. The World Bank noted that Nigeria’s 2024 Eurobonds carried coupons of 9.6% and 10.4%—approximately 300 basis points higher than comparable issuances in 2021.
Across sub-Saharan Africa, borrowing yields during the 2024 reopening averaged 300 to 500 basis points higher than pre-2022 levels.
The Bretton Woods institution warned that while refinancing operations help African nations avoid immediate defaults, locking in elevated borrowing costs for shorter tenors risks trapping governments in continuous debt-rollover cycles, ultimately diverting crucial resources away from domestic infrastructure, social programs, and economic development.
