Nigeria Among Countries Paying Into Africa’s $90bn Bill — S&P

Nigeria is expected to be one of the African countries under serious debt pressure in 2026, as total external debt repayments across the continent move close to $90 billion, according to a new report by S&P Global Ratings.

 African governments are now paying more of their debts in hard currency, mainly dollars. This matters because dollar repayments can quickly drain foreign reserves and weaken a country’s ability to defend its currency or pay for imports.

The ratings firm warns that these repayment schedules are stretching external financial buffers and increasing refinancing risk. In plain terms, some countries may struggle to raise new money to replace old debts when they mature, especially if global investors become cautious.

Why 2026 is a big year

S&P says expected government external debt repayments in 2026 are more than three times what they were in 2012. That jump shows how debt servicing has grown over the last decade, and why many African countries are now more exposed to rollover risk.

Rollover risk is what happens when a country needs to repay a debt, but cannot easily borrow again on good terms. If lenders demand higher interest or refuse to lend, the country’s options become tighter.

The $90 billion figure and the biggest debtors

S&P estimates that rated African countries will face around $90 billion in principal external debt repayments in 2026.

A large share of that figure, about $27 billion, is linked to Egypt, which carries the biggest external debt burden on the continent. After Egypt, S&P lists Angola, South Africa, and Nigeria among the countries with major repayment responsibilities.

Nigeria is not the largest debtor on the list, but S&P says it is still one of the key countries facing large repayments in 2026.

S&P notes that debt pressure is not the same everywhere. Some countries have higher annual debt service costs than others. Where debt service is rising sharply, S&P links it to repeated budget deficits and rising refinancing pressure.

In many cases, governments have been borrowing to cover spending gaps year after year. When those deficits do not decline, debt accumulates, and the cost of repaying it rises.

Despite the heavy repayment burden, S&P says there are signs of cautious improvement in Africa’s sovereign credit picture. It says average sovereign ratings have improved to their best levels since late 2020, helped by reforms and better growth in some countries.

But S&P also says the deeper reforms needed to reduce debt in a lasting way will take longer. In other words, some progress is happening, but the debt problem will not disappear quickly.

How countries are trying to reduce refinancing risk

To manage these pressures, S&P says more governments are using debt-management tools like bond buybacks, debt exchanges, and maturity extensions. The goal is to reduce refinancing risk by spreading repayments over a longer period or changing the structure of the debt.

Countries mentioned in this context include Côte d’Ivoire, Benin, Uganda, Republic of Congo, Mozambique, Kenya, and South Africa.

S&P projects Africa’s average real GDP growth at 4.5% in 2026. It also expects fiscal deficits to narrow slightly to around 3.5% of GDP on average.

But even with that growth, S&P says debt levels are likely to remain elevated. It forecasts government debt across Africa at about 61% of GDP. That shows the main challenge: countries may grow, but they still need stronger control of borrowing and spending to keep debt sustainable.

Nigeria’s Eurobond shows strong investor interest

S&P also points to Nigeria’s return to the Eurobond market. In November 2025, Nigeria raised $2.35 billion through a Eurobond issuance, attracting about $13 billion in investor demand, reported as the strongest demand Nigeria has recorded for a Eurobond offer.

But strong demand does not remove the core issue S&P is warning about: 2026 will be a heavy repayment year for many African countries, including Nigeria, and how governments handle refinancing and debt management will matter more than ever.