A new data report has revealed Nigeria currently owes World Bank. The Debt Management Office showed on Wednesday, January 29, that the total debt Nigeria owes the World Bank Group has risen by $1.3bn in one year to $9.81bn as of September 2019. Nigeria’s debt to the IDA and IBRD stood at $9.41bn and N409.51m as of September 30, 2019, compared to $8.39bn and $124m in September 30, 2018, according to the DMO data.
The total amount of loans approved by the World Bank for Nigeria had reached $24.68bn, data obtained from the multinational development bank showed. As of December 31, 2019, Nigeria had secured $7.14bn loans from the IBRD and $17.54bn loans from the IDA, according to the World Bank data. The IBRD and IDA cancelled $971.04m and $1.77bn respectively of the approved loans.
The data showed that a total of $16.89bn had been disbursed to the country, with $5.72bn from the IBRD and $11.17bn from the IDA. The country had repaid a total of $6.45bn to both institutions ($5.29bn to the IBRD and $1.16bn to the IDA). Consequently, the nation’s total public debt rose to N26.22tn as of September 2019 from N25.70tn in the same period of 2018, according to the DMO.
The DMO said this month that the 2019 Appropriation Act provided for a total new borrowing of N1.61tn, split equally between domestic and external debt, but only the domestic component of N802.82bn was raised due to the late passage of the 2019 budget and the expectation that the implementation of the 2020 budget would commence on January 1.
It said total debt as a percentage of the GDP was 18.47 per cent as of September 2019 and was well within the limit of 25 per cent but “the low revenue base of Nigeria relative to its GDP is clearly reflected in the high debt service to revenue ratio.”
The International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank, have over the years advanced loans to Nigeria.