Nigeria accounted for 16 per cent of Africa's outstanding corporate debt as of December 2025, making it the continent's second-largest corporate debt market, according to the Organisation for Economic Co-operation and Development. The OECD, in its Africa Capital Markets Report 2026, ranked Nigeria behind South Africa, which held 31 per cent of the continent's corporate debt. Egypt accounted for 13 per cent, while Mauritius, Mozambique and Morocco contributed nine per cent, six per cent and five per cent respectively. Together, these six countries accounted for 80 per cent of Africa's outstanding corporate debt, underlining how corporate borrowing remains concentrated in a small number of economies across the continent.
Nigeria's position in African corporate financing comes amid mounting pressures on its business environment. The country faces high interest rates and substantial government borrowing that have shaped financing conditions for companies. Nigeria's public debt increased to N166.79 trillion as of 30 June 2026, up from N159.35 trillion at the end of March, representing an increase of N7.44 trillion within three months, according to the Debt Management Office. The Federal Government proposed N29.2 trillion in new borrowing in its 2026 budget, further highlighting its reliance on debt financing and creating potential competition for funds between the state and private-sector borrowers.
The OECD report noted that corporate financing structures vary across African economies, with syndicated loans remaining the dominant form of market-based corporate financing in most countries. In Nigeria, although the capital market has witnessed increased activity in commercial papers and corporate bonds, bank lending remains a major funding source for businesses. This dependence on banks exposes companies to fluctuations in monetary policy, lending rates and the availability of credit, potentially constraining investment and expansion when borrowing costs rise.
The report identified opportunities for African countries to expand access to long-term financing by mobilising domestic institutional funds. The OECD estimated that Africa holds more than 4.4 trillion dollars in domestic capital pools, including assets managed by banks, pension funds, insurance companies, sovereign wealth funds, public development banks and central banks. According to the organisation, channelling a larger proportion of these resources into domestic and regional capital markets could provide financing for infrastructure, industrialisation and other productive investments. The OECD highlighted the limited global footprint of African capital markets, noting that the continent accounted for just 0.4 per cent of global market capitalisation in 2024. The organisation stated that capital markets remain underutilised as a source of long-term finance, particularly when compared to other emerging-market economies, limiting their contribution to economic growth and resilience.