With $13bn debt, Nigeria ranks fourth in World Bank’s IDA debtors’ list
International Development Association (IDA), a member of the World Bank Group, which offers concessional loans and grants to the world’s poorest developing countries has ranked Nigeria ranked the fourth country in the world with the highest debt.
This is contained in the World Bank’s newly released financial report for the fiscal year of 2022 audited financial statements for IDA.
Nigeria which has the highest IDA debt stock in Africa increased its debt to $13billion since June 30, 2022 from $11.7billion in June 30, 2021
What this translates to , according to analysts is that Nigeria’s debt has surpassed that of Vietnam, which previously occupied the fourth position on the borrowers’ list.
The IDA debt is different from Nigeria’s outstanding debt of $486 million to the International Bank for Reconstruction and Development (IBRD), another organisation under the World Bank Group.
The top ten countries on the IDA borrowers’ list are India, Bangladesh, Pakistan, Nigeria, Vietnam, Ethiopia, Kenya, Tanzania, Ghana and Uganda.
India reduced its debt from $22 billion in 2021 to $19.7 billion in 2022, Bangladesh reduced its debt from $18.1 billion to $18 billion, Pakistan followed suit by reducing its debt from $16.4 billion to $15.8 billion and Vietnam’s debt reduced from $14.1 billion to $12.9 billion.
Recently, the World Bank said Nigeria’s increasing petrol subsidy could pose debt sustainability concerns for the country.
“Risk remains high on increasing fuel subsidies, which could weigh heavily on public finance and pose debt sustainability concerns,” the Bretton-Woods institution said.
“Nevertheless, public debt as a percentage of GDP is currently moderate.”
Expressing worry about the country’s rising debt profile, the Lagos Chamber of Commerce and Industry (LCCI) called on the federal government to rethink sources of debt and spending of borrowed funds.
