Nigeria Jumps to 3rd Spot in World Bank's Debtors List

Nigeria's Debt to World Bank Hits 3rd Highest

Nigeria's total public debt ballooned to N121.67 trillion in the first quarter of 2024...

Nigeria emerges as third-largest borrower from World Bank's IDA, with a loan exposure of $16.5 billion, as its total public debt surges to N121.67 trillion in Q1 2024.

According to the World Bank's latest financial statement, Nigeria has emerged as the third-largest borrower from the International Development Association (IDA) as of June 30. The IDA is a key component of the World Bank, providing concessional loans and grants to the world's most impoverished countries.

Nigeria's loan exposure to the IDA has surged to $16.5 billion by June, highlighting the country's significant reliance on these loans. The IDA's concessional loans offer favorable terms, including low interest rates and extended repayment periods, aiming to stimulate economic growth, reduce disparities, and enhance living standards in developing nations.

“As of June 30, 2024, the ten countries with the highest exposures accounted for 63% of IDA's total exposure,” the World Bank said.

“Monitoring these exposures relative to the SBL requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees.”

Nigeria's total public debt ballooned to N121.67 trillion in the first quarter of 2024, according to the Debt Management Office (DMO) report released on June 20. This represents a significant increase from the N97 trillion recorded in December 2023.

The DMO attributed the surge in public debt to new domestic borrowing by the federal government, aimed at partially financing the 2024 budget deficit. Additionally, disbursements from multilateral and bilateral lenders contributed to the increase, further expanding Nigeria's debt portfolio.

As of the latest report, Nigeria's debt profile reveals that domestic debt totals N65.65 trillion (approximately $46.29 billion), while external debt amounts to N56.02 trillion (around $42.12 billion).