- The Nigerian government is still servicing a 40-year-old World Bank loan borrowed in 1986
- The World Bank advanced the loan to Nigeria under the then-military government of Ibrahim Babangida
- The country also services about 107 other World Bank loans, with the most recent one being in 2018
The Nigerian government is repaying about $14.12 billion in World Bank loans.
According to Punch, the amount is the funds disbursed on about 108 approved loans, data from the website of the World Bank shows.
Oldest loan was borrowed under Babangida in 1986
The oldest loan being serviced was approved almost 40 years ago under General Ibrahim Babangida. The most recent was approved in 2018 under the immediate past president, Muhammadu Buhari.
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The oldest loan is the $100.9 million Multistate Agricultural Development Project, approved to support the state-wide implementation of Agricultural Development Projects to boost food/crop production and small farmers’ income.
Despite the principal amount for the project being placed at $100.9 million, a total of $106 million has been disbursed.
Loans borrowed by several governments over the years
The loans approved in 2018 were serviced by Nigeria, with the disbursed funds categorised under Disbursing and Repaying.’
One such loan was the $125 million fiscal governance and institutions project approved on June 27, 2018.
About $40.17 million has been disbursed under the loan project as of the time of compiling the report.
Yet another loan project under disbursing and repayment was the $750 million Fiscal Governance Institutions Project repayment. About $737.13 million of the loan has been disbursed.
The World Bank approved an additional $750 million loan in December 2020 under the loan project.
The second approval was undergoing disbursement, with repayment still being due.
The $364 million loan and the $122 million loan approved in 2018 under the Electricity project are being repaid while disbursement is ongoing.
Nigeria successfully repays 68 World Bank loans
Reports say Nigeria has fully repaid about 68 loans, estimated at $4.79 billion over the years.
The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which comprise the World Bank, are the institutions advancing the loans to Nigeria.
The two World Bank agencies lend to governments of middle-income and creditworthy low-income countries, with the IDA providing concessionary loans known as credits and grants to governments of the poorest countries.
Nigeria is expected to start servicing several loans after five years of approval, lasting up to 30 years.
The loans are usually concessional financing, are below the market rate, and are cheaper to service.
The recently acquired $800 million World Bank loan obtained to provide palliatives for 50 million Nigerians after subsidy removal attracts a maximum commitment charge rate of one-half of the one per cent annually.
Over $1.7 billion used in debt servicing in 2023
Legit.ng reported that the Debt Management Office (DMO) recently said Nigeria’s debt profile has hit N87 trillion, including the N22 trillion Ways and Means Advances from the Central Bank of Nigeria (CBN).
DMO said the country had spent about $1.7 billion on debt servicing in the first half of 2023.
Findings by Legit.ng showed that the Nigerian government had yet to service any Chinese loans since the beginning of the year.
It is still being determined if the $4.34 billion Chinese loans were due for servicing in the period under review, but DMO data indicates that Nigeria had serviced two loans in the second quarter of 2023.
Nigeria’s debt service gulps N3.04 trillion as total debt stock hit N44.06 trillion
Legit.ng reported the Nigerian government borrowed about N1.22 trillion between September and December 2022, bringing the country’s total debt stock to N44.06 trillion.
With the present debt stock of N44.06 trillion recorded as of September 2022, Nigeria has spent N3.04 trillion to service external debts in nine months of this year, representing a spike of 23.4% year-on-year from N2.46 trillion reported in nine months, data from the Debt Management Office (DMO) says.
An examination of the N3.04 trillion debt service payments showed that the federal government used N2.15 trillion to service domestic debts in nine months.