According to the Debt Management Office and the Bank's financial statements, Nigeria's total debt to the World Bank Group has increased by $660 just in the first half of 2022.
According to information from the Debt Management Office (DMO), Nigeria owed the World Bank $12.38 billion as of December 31, 2021.
According to the World Bank's financial statements for the fiscal year 2022, as of June 30, 2022, Nigeria owed the lending organization $13.04 billion.
The recent wave of borrowings by the federal government has alarmed analysts, particularly those who have criticized it.
According to some predictions and data from the Central Bank of Nigeria (CBN), the federal government would continue to borrow in 2022.
While the IDA offers grants and concessionary loans to governments of the world's poorest nations, the IBRD lends to governments of middle-income and credit-worthy low-income nations.
Nigeria’s debt to the IDA and IBRD stood at $12.55bn and $486m, respectively, as of June 30, 2022, compared to $11.97bn and $410.60m on December 31, 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 of IDA debt stock as of June 30, 2022.
This shows that Nigeria accumulated about $1.3bn of 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 $486 million from the World Bank’s International Bank for Reconstruction and Development.
The top five countries on the list slightly reduced their IDA debt stock, except Nigeria.
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 might be considered sustainable for now, was 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 for now, was vulnerable and costly.
The bank further expressed concerns over the nation’s cost of debt servicing, which according to it, disrupts public investments and critical service delivery spending.