Fresh Fears As Nigeria’s 2022 World Bank Debt Hits $660m

Fresh Fears As Nigeria's World Bank Debt Hits $660m
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Africa Today News, News York can confirm that the total debt owed by Nigeria to the World Bank Group has heightened to $660m in the first six months of the year. Data from both the Debt management and the financial statements of the World Bank has shown.

Data from DMO indicated that debts owed by Nigeria to a Washington-based bank was earlier marked at $12.38 as of December 31, 2021. Financial analysis from the world bank for 2022 fiscal year reveals that Nigeria is indebted to the institution with the record of $13.04bn on June 30, 2022.

Over the years, the International Bank for Reconstruction and Development and the International Development Association which constitutes the world bank have granted loans to Nigeria.

The IBRD lends to governments of middle-income and creditworthy low-income countries while the IDA provides concessionary loans – called credits – and grants to governments of the poorest countries.

Read Also: DMO Reveals Nigeria Didn’t Hide Borrowing Plan From World Bank

Nigeria’s debt to the IDA and IBRD stood at $12.55bn and $486m respectively as of June 30, 2022, compared to $11.97bn and $410.60m on December 32, 2021.

According to  report, rising debt has pushed Nigeria up the World Bank’s top 10 IDA borrowers’ list.

The World Bank Fiscal Year 2021 audited financial statements for IDA revealed that Nigeria was rated fifth on the list with $11.7bn IDA debt stock as of June 30, 2021.

However, the just-published World Bank Fiscal Year 2022 audited financial statements for IDA indicated that Nigeria has advanced to the fourth position on the list, with $13bn IDA debt stock as of June 30, 2022.

The records indicate that Nigeria, barely one fiscal year has amassed a debate of $1.3bn IDA, moving the country to the fourth top debtor on the Vietnam list.

This debt is different from the outstanding loan of $486m from World Bank’s International Bank for Reconstruction and Development.

The top five countries on the list slightly reduced their IDA debt stock except Nigeria.

Nigeria has the highest IDA debt in Africa, as the top three IDA borrowers (India, Bangladesh and Pakistan) are from Asia.

The World Bank divulged recently that Nigeria’s debt, which might be considered tolerable for now, was vulnerable and costly.

The bank said, ‘Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria.’

However, the Washington-based global financial institution added that the country’s debt was also at risk of becoming unsustainable in the event of macro-fiscal shocks.

The bank expressed interest due to the country’s cost of debt payment. According to the world bank the debt has impaired public investments and essential services delivery spending.

Africa Daily News, New York

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