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 a report by 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, while Egypt accounted for 13 per cent.
Mauritius, Mozambique and Morocco contributed nine per cent, six per cent and five per cent, respectively. Together, the six countries accounted for 80 per cent of Africa’s outstanding corporate debt.
The figures underscore Nigeria’s growing importance in the continent’s corporate financing landscape but also highlight the concentration of corporate borrowing in a handful of economies.
The findings come amid concerns about the cost and availability of credit in Nigeria, where high interest rates and substantial government borrowing have continued to shape financing conditions for businesses.
Nigeria’s public debt has also been rising, adding to concerns about competition for funds between the government and private-sector borrowers.
Data from the Debt Management Office showed that Nigeria’s total public debt increased to N166.79tn as of 30 June, 2026, from N159.35tn at the end of March, representing an increase of N7.44tn within three months.
The Federal Government had also proposed N29.2tn in new borrowing in its 2026 budget, further highlighting its reliance on debt financing.
The OECD report observed that corporate financing structures vary across African economies, with syndicated loans remaining the dominant form of market-based corporate financing in most countries.
Although Nigeria’s 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, however, identified opportunities for African countries to expand access to long-term financing by mobilising domestic institutional funds.
It estimated that Africa holds more than $4.4tn 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 OECD, channelling a larger proportion of these resources into domestic and regional capital markets could provide financing for infrastructure, industrialisation and other productive investments.
The organisation also 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.
“Overall, 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,” the OECD said.
