The Federal Government's outstanding guarantees and contingent liabilities climbed to N7.84 trillion as of 30 June 2026, according to data from the Debt Management Office. Collateral pledged for a 1.5 billion dollar foreign-exchange swap arrangement with First Abu Dhabi Bank accounted for more than a third of this total exposure, valued at N2.74 trillion or 34.99 per cent of the government's reported guarantees and contingent liabilities. The government drew the amount from a 5 billion dollar swap arrangement and backed the transaction with Federal Government bonds maturing in May 2032, carrying a coupon of 16.9556 per cent.
Power-sector obligations represented another major source of exposure. Contingent liabilities arising from Put-Call Option Agreements for several power projects stood at N1.88 trillion, accounting for 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 according to the DMO report. A separate N329.80 billion was recorded under Partial Risk Guarantees for power projects, equivalent to 4.21 per cent of the total. The government also guaranteed N501.02 billion under the first series of the National Bulk Electricity Trading Plc's N4 trillion Power Sector Bond Issuance Programme.
Outside the power sector, the Bank of Industry accounted for N1.18 trillion in government-guaranteed exposure, representing 15.04 per cent of the total, relating to the development bank's 750 million euro Eurobond. The Lekki Deep Sea Port project, through Lekki Port LFTZ Enterprise, accounted for another N804.96 billion, or 10.27 per cent of the reported liabilities. The DMO also listed N374.88 billion in pension arrears owed by Ministries, Departments and Agencies. Other guarantees included N5.24 billion for the Federal Mortgage Bank of Nigeria and N25.35 billion for the Nigeria Mortgage Refinance Company, of which N29 billion of the N440 billion available guarantee had been utilised.
These liabilities are distinct from the government's direct debt stock. Nigeria's total public debt reached N166.79 trillion as of 30 June 2026. Nigeria spent N5.28 trillion servicing its domestic debt between January and June 2026, as interest payments on government securities continued to absorb substantial public funds. According to an emerging markets analyst, contingent liabilities do not necessarily translate into immediate government expenditure but can create additional pressure on public finances if the underlying borrowers or projects fail to meet their obligations or the guarantees are called.