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According to recent reports, Nigeria’s debt to the World Bank has risen to $14.34bn as of March 31, 2023, up from $13.93bn recorded by the Debt Management Office in December 31, 2022.
This increase is due to fresh disbursements on approved loans, which added $410m to Nigeria’s debt from the World Bank in the first quarter of 2023.
The International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and creditworthy low-income countries, while the International Development Association (IDA) provides concessionary loans and grants to governments of the poorest countries.
As of March 31, 2023, Nigeria had a debt of $488.66m from IBRD and $13.85bn from IDA. Since 1947, Nigeria has acquired a total of $7.49bn from IBRD and $26.17bn from IDA, making a total of $33.66bn borrowed from the World Bank.
However, about $7.29bn has been repaid on the loans, with $7.86bn yet to be disbursed by the bank.
The DMO recently defended the debt from the World Bank, stating that IDA loans are concessional and attract low charges, making them suitable for funding development in countries like Nigeria.
The DMO added that borrowing from the IDA aligns with Nigeria’s Medium-Term Debt Management Strategy (2020-2023), which requires the country to maximize funds available from multilateral and bilateral sources to access cheaper and long-tenor funds.
