Nigeria's World Bank debt may hit $21.15bn due to undisbursed loans

This increment represents a 66.27% increase in the debt the country currently owes the international financial institution.

This report was contained in the 2022 fiscal year audited financial statements of the World Bank which revealed that Nigeria was yet to receive about $8.12 billion from the bank as of June 30, 2022.

A breakdown of the $8.12 billion expected loan amount revealed it included $7.60 billion from the International Development Association, IDA, and $514 million from the International Bank for Reconstruction and Development, IBRD.

The IBRD and the IDA, are facilities which also are part of the World Bank.

The IBRD gives loans to middle-income and creditworthy low-income countries, while the IDA provides concessionary loans – called credits – and grants to governments of the very poor countries. Both facilities have, over the years, disbursed loans to Nigeria.

While giving reasons why the loans have not been disbursed to Nigeria, the Bank revealed that the borrowers and/or guarantors were mandated to take certain actions and present some necessary documents without which the loans will not be effective and disbursements will not commence.

While reacting to this information, the Debt Management Office, DMO had confirmed that as of March 31, 2022, Nigeria’s debt to the World Bank was $12.72bn.

According to a report earlier published by The PUNCH, the total debt owed to the World Bank by Nigeria rose by $660 million in the first six months of 2022 while as at June 30 2022, Nigeria’s debt to the IDA and IBRD stood at $12.55bn and $486m respectively.

Nigeria currently has the highest IDA debt in Africa, while the top three IDA borrowers (India, Bangladesh and Pakistan) are from Asia.