Nigeria's outstanding guarantees and contingent liabilities reached N7.84 trillion as of 30 June 2026, according to the Debt Management Office, exposing the government to significant financial risks beyond its direct borrowing.
Collateral pledged for a $1.5 billion foreign-exchange swap with First Abu Dhabi Bank accounted for more than a third of the total exposure, valued at N2.74 trillion. The government backed this transaction with Federal Government bonds maturing in May 2032, carrying a coupon of 16.9556 per cent, the DMO said.
Power-sector obligations represented another major source of exposure. Contingent liabilities from Put-Call Option Agreements for power projects stood at N1.88 trillion, or 23.93 per cent of the total, covering the Azura-Edo Independent Power Project, Calabar National Integrated Power Project, Afrinergia Power Limited and CT Cosmos. An additional N329.80 billion was recorded under Partial Risk Guarantees for power projects, according to the DMO.
Other significant exposures included N1.18 trillion in government-guaranteed exposure through the Bank of Industry for its €750 million Eurobond, and N804.96 billion for the Lekki Deep Sea Port project. The government also listed N374.88 billion in pension arrears owed by Ministries, Departments and Agencies.
These contingent liabilities are distinct from Nigeria's direct public debt, which reached N166.79 trillion as of 30 June 2026. Between January and June 2026, Nigeria spent N5.28 trillion servicing its domestic debt, as interest payments on government securities continued to absorb substantial public funds.