FG guarantees and contingent liabilities rise to N7.84 trillion as swap collateral looms
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 nearly 35% of the total. This figure comes from the Debt Management Office’s report covering exposures across the power sector, financial institutions, infrastructure projects and pension obligations. Power-sector contingent liabilities from Put-Call Option Agreements total N1.88 trillion (24%), while the Bank of Industry guarantee amounts to N1.18 trillion (15%). Other major exposures include the Lekki Port LFTZ Enterprise guarantee (N804.96 billion), NBET power-sector bond guarantee (N501.02 billion) and pension arrears (N374.88 billion).
These liabilities matter because they represent potential future calls on government finances, which could pressure the budget, increase borrowing costs, and limit spending on services like health, education and infrastructure. High contingent liabilities also signal fiscal risk to investors and may affect naira stability if the government needs to meet swap obligations or guarantee payouts.
Citizens should watch for updates in the DMO’s quarterly reports, consider how fiscal tightening could affect taxes or public projects, and plan personal finances with awareness of possible macroeconomic shifts. The government’s debt-service costs remain substantial, with N5.28 trillion spent on domestic debt in the first half of 2026 and N11.9 trillion borrowed between June 2023 and December 2025.