{"id":11610,"date":"2026-11-07T06:30:46","date_gmt":"2026-11-07T06:30:46","guid":{"rendered":"https:\/\/globalnigerianews.com\/index.php\/2026\/11\/07\/nigeria-among-six-countries-holding-80-of-africas-corporate-debt-oecd\/"},"modified":"2026-11-07T06:30:46","modified_gmt":"2026-11-07T06:30:46","slug":"nigeria-among-six-countries-holding-80-of-africas-corporate-debt-oecd","status":"publish","type":"post","link":"https:\/\/globalnigerianews.com\/index.php\/2026\/11\/07\/nigeria-among-six-countries-holding-80-of-africas-corporate-debt-oecd\/","title":{"rendered":"Nigeria among six countries holding 80% of Africa\u2019s corporate debt \u2013 OECD"},"content":{"rendered":"<p>Nigeria is among six African countries that accounted for 80% of the continent\u2019s outstanding corporate debt at the end of 2025, according to the Organisation for Economic Co-operation and Development (OECD).<\/p>\n<p>The finding is contained in the OECD Africa Capital Markets Report 2026, released on Friday and obtained by Nairametrics.<\/p>\n<p>The report highlights the concentration of corporate debt activity in a small number of African economies, despite ongoing efforts to deepen capital markets across the region.<\/p>\n<p>South Africa had the largest share at approximately 31%, followed by Nigeria at 16% and Egypt at 13%. Mauritius accounted for 9%, Mozambique 6% and Morocco 5%, bringing the combined share of the six countries to 80%.<\/p>\n<h4><strong>Six countries dominate African corporate debt<\/strong><\/h4>\n<p>The OECD said corporate debt market development varies significantly across African economies, with activity concentrated in a handful of countries.<\/p>\n<ul>\n<li>South Africa has maintained its position as the region\u2019s largest corporate debt market over the past 15 years, with outstanding corporate debt of $63 billion at the end of 2025. Egypt, however, has lost some of its relative share.<\/li>\n<li>Companies headquartered in the country accounted for 30% of Africa\u2019s corporate debt in 2010, slightly below South Africa\u2019s share, but that proportion had fallen by more than half by 2025.<\/li>\n<li>The report attributed much of the decline to a contraction in Egypt\u2019s corporate debt stock rather than rapid expansion in other markets.<\/li>\n<\/ul>\n<p>Syndicated loans remain the dominant form of market-based corporate debt financing in most African countries. Corporate bonds play a more significant role in Morocco, Gabon, Sudan and Togo, although the OECD noted that, outside Morocco, this largely reflects financial-sector issuance and underdeveloped syndicated loan markets rather than deep corporate bond markets.<\/p>\n<ul>\n<li>The organisation also observed that African economies have shown some resilience amid challenging external and macro-financial conditions, supported partly by market reforms, greater participation by domestic investors and improvements in market infrastructure.<\/li>\n<\/ul>\n<p>However, Africa accounted for only 0.4% of global market capitalisation in 2024. Shallow domestic markets, limited liquidity and continued dependence on bank lending and external official financing remain major constraints.<\/p>\n<h4><strong>Africa\u2019s $4.4 trillion domestic capital pool<\/strong><\/h4>\n<p>Despite the relatively small size of African capital markets, the OECD identified significant potential in the financial resources already accumulated within the continent.<\/p>\n<ul>\n<li>It estimated that Africa\u2019s domestic capital pools exceed $4.4 trillion. These include assets held by banks, public development banks, sovereign wealth funds, pension funds, insurance companies, other financial institutions and central banks.<\/li>\n<li>According to the report, mobilising more of these resources through domestic and regional capital markets could provide long-term financing for productive investment while strengthening financial resilience, particularly as access to external financing remains constrained.<\/li>\n<\/ul>\n<p>The OECD said the continent\u2019s domestic capital pools account for around 0.9% of global financial assets, highlighting the gap between the resources available within African economies and the relatively limited role of their capital markets in financing growth.<\/p>\n<ul>\n<li>\u201c<em>Overall, capital markets remain underutilised as a source of long-term finance \u2014 particularly when compared to other emerging-market economies \u2014 limiting their contribution to economic growth and resilience,<\/em>\u201d the OECD said.<\/li>\n<\/ul>\n<h4><strong>Nigerian firms still depend on bank loans<\/strong><\/h4>\n<p>Nigeria\u2019s corporate debt profile reflects the report\u2019s concerns about the continued reliance on bank financing, despite growth in alternative funding instruments such as commercial papers and corporate bonds.<\/p>\n<p>The funding picture also comes amid changing liquidity conditions in the banking system. Nairametrics <a href=\"https:\/\/nairametrics.com\/2026\/11\/02\/cbn-pumps-n3-20-trillion-into-banking-system-as-debt-repayments-outpace-auctions\/\">reported that the Central Bank of Nigeria recorded a net liquidity injection of approximately N3.20 trillion<\/a> in October 2026, as maturing securities worth N10.69 trillion exceeded the N7.49 trillion raised through Open Market Operations and Nigerian Treasury Bills.<\/p>\n<p>Source: <\/p>\n<div class=\"nSourse\">Nairametrics<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Nigeria is among six African countries that accounted for 80% of the continent\u2019s outstanding corporate debt at the end of 2025, according to the Organisation for Economic Co-operation and Development&hellip; <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-11610","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/11610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=11610"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/11610\/revisions"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=11610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=11610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=11610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}