The Federal Government’s outstanding guarantees and contingent liabilities stood at N7.84 trillion as of June 30, 2026, with collateral for a $1.5 billion Total Return Swap accounting for N2.74 trillion, or 34.99% of the total.
The figures are contained in the Debt Management Office’s (DMO) report on outstanding Federal Government guarantees and contingent liabilities, which covers exposures across the power sector, financial institutions, infrastructure projects and pension obligations.
The report puts the total at N7.84 trillion, with power-sector obligations and guarantees for the Bank of Industry also accounting for substantial portions of the exposure.
Dollar swap collateral dominates FG liabilities
The collateral for the Total Return Swap with First Abu Dhabi Bank was the largest item in the DMO’s breakdown, accounting for almost 35% of outstanding guarantees and contingent liabilities.
The Federal Government drew down $1.5 billion under the $5 billion swap arrangement and issued Federal Government bonds due in May 2032, carrying a coupon of 16.9556%, as collateral for the amount drawn.
Other major exposures include:
- Power-sector contingent liabilities arising from Put-Call Option Agreements (PCOAs) stood at N1.88 trillion, representing 23.93% of the total.
- The Bank of Industry guarantee amounted to N1.18 trillion, or 15.04% of the total, in respect of its €750 million Eurobond.
- The guarantee for Lekki Port LFTZ Enterprise, which covers the Lekki Deep Sea Port project, stood at N804.96 billion, accounting for 10.27%.
- The Nigeria Bulk Electricity Trading (NBET) Plc power-sector bond guarantee amounted to N501.02 billion, while pension arrears for ministries, departments and agencies stood at N374.88 billion.
The figures show that the swap collateral, power-sector obligations and Bank of Industry guarantee together account for most of the Federal Government’s reported exposure.
Power sector accounts for significant exposure
The DMO listed N1.88 trillion in contingent liabilities arising from PCOAs for the Azura-Edo Independent Power Project, Calabar National Integrated Power Project, Afrinergia Power Limited and CT Cosmos.
- A further N329.80 billion was recorded under Partial Risk Guarantees (PRGs) for power projects, representing 4.21% of the total. NBET provided the underlying data for both categories.
- The government also guaranteed N501.02 billion under the first series of NBET’s N4 trillion Power Sector Bond Issuance Programme, established through a special purpose vehicle to settle debts owed to electricity generation companies.
Other reported exposures include N5.24 billion for the Federal Mortgage Bank of Nigeria and N25.35 billion for the Nigeria Mortgage Refinance Company. The latter guarantee supports long-term funding through capital-market notes used to refinance or purchase mortgages originated by eligible mortgage lenders.
The DMO said N29 billion had been utilised from the N440 billion guarantee available to the Nigeria Mortgage Refinance Company.
FG debt-service costs remain substantial
The latest guarantee figures come amid continued pressure from debt-service obligations. Nairametrics previously reported that Nigeria spent N5.28 trillion servicing domestic debt in the first half of 2026, with interest and rental payments accounting for N4.95 trillion.
The publication also reported that the Federal Government incurred N10.61 trillion in additional debt-service costs between June 2023 and December 2025, about N4.14 trillion more than the N6.47 trillion spent on strategic infrastructure over the same period.
In a separate report, Nairametrics said the Federal Government borrowed N11.9 trillion between June 2023 and December 2025, while arguing that economic reforms had created fiscal space and prevented even higher borrowing.