The Nigerian Economic Summit Group (NESG) has warned that Nigeria’s increasing reliance on external borrowing could pose risks to economic stability.
The group disclosed this in its latest economic outlook titled “2025Q4 Capital Importation Alert”.
The warning followed the country’s recent $2.35 billion Eurobond issuance.
According to the NESG, while the successful return to international capital markets reflects renewed investor confidence, caution is required in accumulating foreign debt.
The NESG stressed that excessive borrowing could undermine recent gains in credit ratings and weaken investor sentiment.
The group noted the need for caution in managing Nigeria’s external debt profile, pointing out that while borrowing can support fiscal needs, it must be carefully managed to avoid long-term vulnerabilities.
The NESG also highlighted banking sector reforms as a positive development for Nigeria’s investment climate.
