Nigeria’s debt to World {Bank} rises by $1.07 billion underneath Tinubu’s administration
Nigeria’s debt to the World {Bank} has elevated by $1.07 billion underneath President Bola Tinubu’s administration.
Based on an evaluation of knowledge from the Debt Administration Workplace (DMO), the debt rose from $14.51 billion on the finish of the second quarter of 2023 to $15.59 billion by the tip of the primary quarter of 2024, marking a 7% improve.
The Worldwide Growth Affiliation (IDA), one of many arms of the World {Bank} Group, skilled essentially the most substantial improve in its lending to Nigeria.
The IDA’s loans to Nigeria grew from $14.03 billion in Q2 2023 to $15.10 billion in Q1 2024, an increase of roughly $1.08 billion.
However, the Worldwide {Bank} for Reconstruction and Growth (IBRD) noticed a slight lower in its loans to Nigeria, from $485.75 million to $484.81 million over the identical interval.
Debt service prices to World {Bank} gulp $1.06 billion
Whereas the rise in borrowing is notable, Nigeria’s debt servicing prices have additionally been vital, nearly matching the quantity borrowed.
Over the 4 quarters from Q2 2023 to Q1 2024 underneath Tinubu’s administration, Nigeria has spent a complete of $1.06 billion on debt servicing for its World {Bank} loans.
The Worldwide Growth Affiliation (IDA) has been a big supply of loans for Nigeria, and the debt servicing prices for these loans have been substantial. Over the 4 quarters from Q2 2023 to Q1 2024, Nigeria spent a complete of $629.4 million on servicing its debt to the IDA.
Along with the IDA, Nigeria additionally incurred debt servicing prices to the Worldwide {Bank} for Reconstruction and Growth (IBRD), totaling $432.24 million over the identical interval.
The entire debt servicing price for each IDA and IBRD quantities to $1.06 billion, which is nearly equal to the $1.07 billion borrowed in the identical timeframe.
What you must know
- Nairametrics earlier reported that Nigeria secured a complete of $4.95 billion in loans from the World {Bank} underneath the administration of President Bola Tinubu amid issues over the nation’s rising exterior debt servicing prices.
- Not lower than six mortgage initiatives have been permitted they usually embody loans for energy ($750 million), girls empowerment ($500 million), lady’s schooling ($700 million), renewable power ($750 million), {economic} stabilization reforms ($1.5 billion) and useful resource mobilization reforms ($750 million), in line with findings by Nairametrics.
- Additionally, the World {Bank} might approve 4 mortgage initiatives totalling $2 billion for Nigeria this yr.
- These 4 initiatives are at present present process idea evaluation, an appraisal stage that can result in additional negotiation and approval between Nigeria, which is the borrower and sometimes represented by the Minister of Finance and the World {Bank}.
- If permitted, Nigeria may have secured a complete of $4.25 billion in loans from the {bank} this yr alone and a cumulative $6.95 billion underneath the administration of President Bola Tinubu.
