According to recent data from the World Bank Group Finances, the Federal Government of Nigeria is still grappling with a significant debt burden of $10. 6 billion, accumulated during the tenures of former Presidents Olusegun Obasanjo, Umaru Musa Yar’ Adua, and Goodluck Jonathan. This revelation highlights the lingering impact of past borrowing on the country’ s finances.
Nigeria’ s total debt (domestic and external) is N121. 67 trillion ($91. 46 billion) as of March 31, 2024.
Domestic debt is N65. 65 trillion ($46. 29 billion), while external debt is N56. 02 trillion ($42. 12 billion).
The current administration secured $4. 95 billion in foreign loans within its first 12 months.
$15. 55 billion was spent on debt servicing between 2019 and 2024.
– The Federal Government is still repaying 69 loans secured between 2000 and 2014.
Some of the loans still being repaid were taken out as early as 2000. These include the $60 million Community- Based Poverty Reduction Project, the $55 million Second Primary Education Project, the $20 million Economic Management Capacity Building Project, and the $5 million Small Town Water Supply and Sanitation Programme Pilot Project.
In 2001, Nigeria acquired additional loans, such as the $100 million Transmission Development Project, the $114 million Privatisation Support Project, and the $90. 3 million HIV/AIDS Programme Development. These loans were initially secured to enhance infrastructure and tackle public health issues but have since contributed to the nation’ s increasing debt burden.
Between 2003 and 2005, Nigeria obtained an additional $1. 1 billion in loans from the World Bank. These loans included $70 million for the Local Empowerment and Environmental Management Project, $100 million for the Second FADAMA Development Project, $32 million for the Micro, Small, and Medium Enterprises Project, $140 million for the Federal Government Economic Reform and Governance Project, and $120 million for the Sustainable Management of Mineral Resources Project.
The country continued to accumulate debt, securing $4 billion in loans between 2006 and 2010, followed by another $4. 3 billion between 2011 and 2014. Noteworthy loans during this time include $200 million for the Lagos Metropolitan Development and Governance Project, $50 million for the Avian Influenza Control and Human Pandemic Preparedness and Response Project, and $180 million for the Malaria Control Booster Project, all obtained in 2006.
The loans fall under two major divisions of the World Bank: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The IBRD extends loans to middle- income and creditworthy low- income countries, while the IDA focuses on providing interest- free loans and grants to the world’ s poorest nations.
It is important to note that the figures mentioned do not include Trust Funds, Financial Intermediary Funds (FIFs) Commitments, loans to the International Finance Corporation (IFC), or guarantees provided by the IBRD/IDA.
