The Federal Government of Nigeria has reported that its outstanding guarantees and contingent liabilities have risen to N7.84 trillion as of June 30, 2026, according to data published by the Debt Management Office. This figure represents potential financial obligations that the state may be required to settle if specific government-backed transactions or projects encounter difficulties. The total exposure is separate from the state's direct debt stock, which reached N166.79 trillion during the same period, but it indicates that fiscal risks extend beyond the money already borrowed and scheduled for repayment.
The single largest component of these liabilities is the collateral pledged for a foreign exchange swap arrangement with First Abu Dhabi Bank. According to Punch, the government drew $1.5 billion from a larger $5 billion swap facility, backing the transaction with federal bonds maturing in May 2032. These bonds carry a coupon of 16.9556 percent, and the associated collateral was valued at N2.74 trillion, accounting for nearly 35 percent of the total contingent liabilities. An emerging markets analyst cited by Punch noted that while these are not immediate expenditures, they create pressure on public finances if underlying borrowers fail to meet their obligations.
Obligations related to the power sector constitute the second major source of exposure. The Debt Management Office recorded N1.88 trillion in contingent liabilities linked to Put-Call Option Agreements for several independent power projects, including the Azura-Edo and Calabar National Integrated Power Projects. These agreements represent approximately 24 percent of the total reported liabilities. Additionally, N329.80 billion was listed under Partial Risk Guarantees for power projects, with figures supplied by Nigeria Bulk Electricity Trading Plc. The state also backed N501.02 billion under the first series of the Power Sector Bond Issuance Programme, a special-purpose vehicle created to clear debts owed to electricity generation firms.
Beyond the power sector, the Bank of Industry accounted for N1.18 trillion in government-guaranteed exposure, tied to a €750 million Eurobond. The Lekki Deep Sea Port project contributed another N804.96 billion to the total. The report also highlighted N374.88 billion in pension arrears owed by various ministries and departments. These guarantee figures emerge at a time when the federal government is facing substantial debt-servicing costs, having spent N5.28 trillion servicing domestic debt between January and June 2026.