Nigeria is 5th on World Bank’s borrowers’ list

Nigeria is the fifth-highest borrower from the World Bank Group and among the 10 highest debt risk exposure globally, a report said.

Currently, the country has borrowed $11.7 billion (about N4.816 trillion) which is nearly one-third of the 2021 national budget, which is put at N13.6tr.

The World Bank in the Fiscal Year 2021 (FY21) financial statement of the International Development Association (IDA), its subsidiary, said India is leading with $22bn debt, Bangladesh next with $18.1bn, Pakistan, $16.4bn, Vietnam, $14.1bn, and Nigeria has $11.7bn debt, reports Daily Trust.

With a population of approximately 200 million, each citizen owes the World Bank at least N24,080 in terms of per head distribution.

Other African countries on the borrowers chart are Ethiopia with $11.2bn, Kenya with $10.2bn, Tanzania with $8.3bn, Ghana with $5.6bn, and Uganda, $4.4bn.

In 2022, the organization said the single borrower limit (SBL) has been set at $45bn, about 25 percent of $180.9bn of equity as of June 30, 2021, according to Daily Trust.

The bank offers concessional loans and grants to the poorest developing countries who are its members.

“As of June 30, 2021, the 10 countries with the highest exposures accounted for 66% of IDA’s total exposure,” it noted.

The report also said $19.5bn loans would be disbursed to Nigeria, which includes $1.46bn loans approved but not yet signed $6.61bn signed loan commitment, and $11.47bn outstanding loans.