Rising debt has pushed Nigeria up the World Bank’s top 10 International Development Association borrowers’ list.

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

However, the newly released World Bank Fiscal Year 2022 audited financial statements for IDA showed that Nigeria has moved to the fourth position on the list, with $13bn IDA debt stock as of June 30, 2022.

This shows that Nigeria accumulated about $1.3bn IDA debt within a fiscal year, with the country taking over the fourth top debtor position from Vietnam.


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.

India, which is still the first on the list reduced its IDA debt stock from $22bn in the previous fiscal year to $19.7bn, followed by Bangladesh from $18.1bn to $18bn.


[i]It is followed by Pakistan which cut its debt from $16.4bn to $15.8bn, and lastly, Vietnam, which went down the list to fifth position, from $14.1bn to $12.9bn.[/i]

Nigeria has the highest IDA debt in Africa, as the top three IDA borrowers (India, Bangladesh and Pakistan) are from Asia. The World Bank disclosed recently that Nigeria’s debt, which may be considered sustainable for now, is 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 further expressed concerns over the nation’s cost of debt servicing, which according to it, disrupted public investments and critical service delivery spending.

Economists have also raised concerns over the rising debt profile of the Federal Government.

The Fiscal Policy Partner and Africa Tax Leader of PwC, Mr Taiwo Oyedele, expressed his agreement with the World Bank on the high cost of debt servicing.

He said, “I agree with the World Bank. Although the debt to GDP ratio is not too high, if you think about the debt service cost to revenue ratio, it is already over 70 per cent. That’s when you know it’s costly.

“Nigeria borrows at double-digit, and even when we borrow in dollars, the rates are very high and then you devalue the naira and the cost of servicing the debt in naira goes up because it is dollar-dominated debt.

“Put all of that together, and you can easily say to yourself that even though our debt to GDP ratio is very low, our cost of borrowing is unsustainable because it is very high, and therefore, make it very costly.”

A former Deputy Governor of the Central Bank of Nigeria and former presidential candidate, Kingsley Moghalu, also criticised the increasing borrowing tendency of the government, urging the officials to re-consider other ways of generating revenue for the country.

According to Moghalu, it was also not reasonable to borrow for infrastructural development as the government could expand the public-private partnership options for such development.

In a document by the Director General of the Debt Management Office, Patience Oniha, recently obtained by our correspondent, the DMO stated that high debt levels would often lead to high debt services and affect investments in infrastructure.

According to the DMO DG, “High debt levels lead to heavy debt service which reduces resources available for investment in infrastructure and key sectors of the economy.”

Source: https://punchng.com/Nigeria-three-others-top-World-Bank-debtors-list

We are just keeping quiet.All this loans that Buhari and his finance minister have obtained which they cannot account for are going to be paid by nigerians.

If their tenure ends they will vacate their offices and go and enjoy their loots while vat,stamp duty charges and other unreasonable taxes will be introduced by the incoming government to repay the loan.
We are the ones that are going to pay for the money they borrow and steal.

We are advocating for women to be given a leadership position.However,the minister of finance and her humanitarian counterparts who happens to be women are disasters.

If afta all the loans Buhari took we don't make it to the list of top debtors, den it would have been an achievement by the govt

Thiefnubuu wants to become president to make Nigeria the number 1 on the list

The APC led FG and all its zombies are well pleased. Then Tinubu wants to make the country number one on the chart as he promised to "rule Nigeria exactly as Buhari is doing" going by Festus Keyamo's senseless statement. Don't allow it happen.

“Nigeria borrows at double-digit, and even when we borrow in dollars, the rates are very high and then you devalue the naira and the cost of servicing the debt in naira goes up because it is dollar-dominated debt...."

Terrible country with clueless and incompetent leaders.

Good one Nigeria. It's good to always be on top. Whether for good or bad.

We go pay

Pickmycall:
We are advocating for women to be given a leadership position.However,are minister of finance and her humanitarian counterparts who happens to be women are disasters.

Remember they are Fulani Muslim destroyers of anything good in the country. No Fulani in history has ever given anything to mankind. They only take and take, steal, kill, loot and destroy whatever they meet on their path.
They came with deceptively crafted 'good' intentions but always give the opposite.

ZKOSOSO:

Remember they are Fulani Muslim destroyers of anything good in the country. No Fulani in history has ever given anything to mankind. They only take and take, steal, kill, loot and destroy whatever they meet on their path.
They came with deceptively crafted 'good' intentions but always give the opposite.

Some of y'all just talk without thinking

If the black man cannot run this country, invite the white man to come and replicate what they did in South Africa.

Highest in Africa ?
Jonathan asked us then do you guys want to go back 10yrs or move forward.
People shouted anything but jonathan.

Now Jonathsn is a saint thanks to old baba & APC.

Yet APC is still campaigning after taking us to trenches

K

Wahala Wahala

AMERICA'S WORLD BANK DEBT IS OVER 31 TRILLION DOLLARS

SOUTH AFRICA'S WORLD BANK DEBT IS OVER 130 BILLION DOLLARS

YET AMERICA IS A THOUSAND YEARS AHEAD OF NIGERIA AND SOUTH AFRICA IS 100 YEARS AHEAD OF NIGERIA

ALL THE WORLD POWERS AND COUNTRIES THAT ARE THRIVING OWE THE WORLD BANK A HUGE DEBT THAT THEIR GENERATIONS TO CUM WILL STILL BE SERVICING THIS DEBT YET THEY ARE ALL STILL THRIVING AND RULING THE WORLD

THE FUNDAMENTAL QUESTION IS WHY IS NIGERIA WITH SUCH A LOW DEBT FAILING TO RISE UP?

This monies are being borrowed to be looted

World Bank should open a office here , IMF all of them and whenever Nigeria asks for a loan to so such and such they should approve but execute the such and such themselves.

lol Maybe na Nigeria be the Debtors Admin WhatsApp group sef....

Borrowing is not the problem, but this money is not accounted for...

Merry Christmas Nairalanders...

Wow!... # another lifeless achievement of the satanic govt of SELF SERVING THIEVES AND BLOODTHIRSTY TERRORISTS
VOTE WISELY COME 2023!

Top 3

APC has finished this country.

What would then happen if Tinubu succeed Buhari?

Pickmycall:
We are just keeping quiet.All this loans that Buhari and his finance minister have obtained which they cannot account for are going to be paid by nigerians.

If their tenure ends they will vacate their offices and go and enjoy their loots while vat,stamp duty charges and other unreasonable taxes will be introduced by the incoming government to repay the loan.
We are the ones that are going to pay for the money they borrow and steal.

Nigeria is no man's land... The system indirectly tells anyone in office that it is his or her turn to loot. Britain is looting the land, China is looting the same place, US is mining it and you say make leaders no loot there own. Nigeria needs indigenous people to create a sense of ownership

It is a task that must be done


And we have all the mineral resources to make every Nigeria a millionaire at least ... So could someone please explain to me how we are in debt to this depth?

If you don't borrow, why do you drive Benz.....Bobo chicago

Honestly, I will soon like seeing some foolish Nigerians suffer, at least it will make them get sense by force.
You mean after this devilish knowledge, some people still campaign for this evil party APC?
Na wa.

Money that they are borrowing, they are looting

EmahBoss:
Borrowing is not the problem, but this money is not accounted for...

Merry Christmas Nairalanders...

Borrowing will always be a problem for a country that has problem with spending instead of revenue problems.

PureMe01:
Thiefnubuu wants to become president to make the number 1 on the list

Tinubu has it in record to be the best governor to every turn around situations of a state. You are talking to exposed citizens and not fools

Tomfrancis1:
Hi everyone!!!

I am here to share my sure odds to those who are looking for 100% sure 2 odds.

This is an opportunity and also the right place you can benefit from sport betting daily

This odds is 100% guarantee winning and it's very sure and mainly For VIP stakers.

If you are interested and in need of this sure 2 odds

You can kindly Contact me with the number below!


+1 930- 203 -1650

Ok

This calamity of a govt and APC will not ruin us all. Everytime we complain of their wreckless borrowing, their supporters will tell us how Every country borrows. Unfortunately, they are preping Baba Agbado to come and borrow more after all, he said statistics does not matter.