Nigeria Rises On List Of World’s Chronic Debtors

The World Bank has revealed that Nigeria is fourth on the world’s debtor list, after releasing its Fiscal Year 2022 International Development Association (IDA) financial statements.

Nigeria rose from fifth place to fourth, indicating the international development association debt of the country is rising, with Vietnam taking the African nation’s place.

The country is the only African nation on the top five list, with the remaining being Asian countries. Nigeria’s debt worries the World Bank, which stated that it might become unsustainable.

According to the World Bank, the debt is becoming more expensive, “Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria.”

The debt increased by $1.3 billion within a year, considering Nigeria’s international development association debt was $11.7 billion as at June 30, 2021, but stood at $13 billion debt at the end of the first half of 2022.

Prime Business Africa gathered from the report that Nigeria was the only country that failed to reduce its debt among the top five, which consist of India, Bangladesh, Pakistan and Vietnam.

In the list, India’s international development association debt was cut down to $19.7 billion, below the $22 billion that it owed during the corresponding period of last year.

Similarly, Bangladesh debt fell from $18.1 billion to $18 billion during the period under review, with Pakistan’s international development association debt down to $15.8 billion, from $16.4 billion, while that of Vietnam reduced from $14.1 billion to $12.9 billion.

Meanwhile, the $13 billion does not include the $486 million loan from the World Bank’s International Bank for Reconstruction and Development.