The Federal Government’s guarantees and contingent liabilities reached ₦7.84tn as of June 30, 2026, raising concerns about potential pressure on public finances if government-backed obligations are triggered.
Data from the Debt Management Office show that collateral for a $1.5bn foreign exchange swap with First Abu Dhabi Bank accounted for ₦2.74tn, representing 34.99 per cent of the total exposure.
Power-sector agreements were another major source of risk, with Put-Call Option Agreements for several projects accounting for ₦1.88tn. The projects include Azura-Edo, Calabar National Integrated Power Project, Afrinergia Power and CT Cosmos.
Other exposures included ₦1.18tn guaranteed for the Bank of Industry’s €750m Eurobond and ₦804.96bn linked to the Lekki Deep Sea Port project. The government also reported ₦374.88bn in pension arrears owed by ministries, departments and agencies.
See also Nigeria’s Domestic Debt Service Falls to N2.14trn in Q2 2026 https://vistaonenews.com/2026/09/28/nigerias-domestic-debt-service-falls-to-n2-14trn-in-q2-2026/
A further ₦501.02bn was guaranteed under the first series of the Nigeria Bulk Electricity Trading power-sector bond programme, while partial risk guarantees for power projects stood at ₦329.80bn.
Although contingent liabilities are not immediate debts, they can become actual government expenditure if borrowers or projects fail to meet their obligations.
The exposure is separate from Nigeria’s direct public debt, which stood at ₦166.79tn at the end of June 2026. The figures highlight the need to monitor government-backed commitments alongside borrowing and debt-servicing costs.
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