Nigeria is in the fourth position on the list of World Bank‘s top debtors, Financial reports have revealed.
According to the newly released World Bank Fiscal Year 2022 audited financial statements for International Development Association (IDA), the African giant now has an IDB debt stock of $13bn since June 30, 2022.
Out of the top 10 IDB borrowers’ list, Nigeria was rated fifth with $11.7bn IDA debt stock as of June 30, 2021.
The International Financial Institution revealed in its audited financial statements Nigeria has 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 the World Bank’s International Bank for Reconstruction and Development.
Other top five countries on the list are said to have slightly reduced their IDA debt stock, except Nigeria.
NaijNaira understands that 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.
It is followed by Pakistan which cut its debt from $16.4bn to $15.8bn, and lastly, Vietnam, which went down the list to the fifth position, from $14.1bn to $12.9bn.
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.”
The Washington-based global financial institution highlighted that Nigeria’s debt was also at risk of becoming unsustainable in the event of macro-fiscal shocks.
Economists have also raised concerns over the rising debt profile of the Federal Government.
In one of his publications, a former Deputy Governor of the Central Bank of Nigeria, 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.