Nigeria’s whole debt to the World Bank elevated by $2.36 billion in 2024, pushed by six newly accredited loans focused at key sectors together with healthcare, rural infrastructure, governance, and monetary reforms.
This pushed the nation’s whole debt to the World Bank — which incorporates borrowings from the Worldwide Improvement Affiliation (IDA) and the Worldwide Bank for Reconstruction and Improvement (IBRD) — from $15.45 billion in 2023 to $17.81 billion as of December 2024.
Knowledge from the Debt Administration Workplace (DMO) exhibits that debt to the IDA rose from $14.96 billion to $16.56 billion, whereas loans from the IBRD climbed considerably from $485.54 million to $1.24 billion.
This 15.3% improve marks Nigeria’s strongest annual development in publicity to the World Bank lately, with the Bretton Woods establishment sustaining its place because the nation’s most important multilateral creditor.
Six new loans accredited in 2024
- In accordance with World Bank data, the surge in debt was triggered by the approval of six main loans in 2024 with a mixed worth of $4.25 billion. These loans lower throughout infrastructure, healthcare, and financial stabilization efforts.
- The biggest of the loans is the Nigeria Reforms for Financial Stabilization to Allow Transformation (RESET) Improvement Coverage Financing (DPF), a $1.5 billion facility accredited in June 2024 to help macroeconomic reforms, create fiscal house, and shield weak teams. Nairametrics earlier reported that the World Bank disbursed a $1.5 billion mortgage to Nigeria below the RESET DPF initiative.
- Additionally accredited on the identical date was the NG Accelerating Useful resource Mobilization Reforms Program-for-Outcomes (PforR) value $750 million, which goals to spice up non-oil revenues and safeguard oil and gasoline income streams. Each applications are being applied by the Federal Ministry of Finance.
- Different $500 million loans embrace the Rural Entry and Agricultural Advertising and marketing Venture – Scale Up (accredited in December 2024), the Nigeria: Major Healthcare Provision Strengthening Program, and the HOPE Governance Venture aimed toward enhancing useful resource administration in training and well being — each accredited in September. Additionally accredited was the Sustainable Energy and Irrigation for Nigeria Venture, which focuses on dam security and water useful resource administration for energy and agriculture.
- Though these tasks have mixed commitments of $4.25 billion, precise disbursements in 2024 amounted to $2.36 billion, with the rest anticipated to be drawn over the subsequent few years.
World Bank now accounts for almost 40% of Nigeria’s whole exterior debt
By the tip of 2024, Nigeria’s whole exterior debt stood at $45.78 billion. The World Bank’s share — at $17.81 billion — accounted for 38.9% of that determine, up from 36.4% a yr earlier. Throughout the multilateral class, the World Bank now represents 79.8% of Nigeria’s whole multilateral debt, which stood at $22.32 billion in 2024.
- As compared, as of December 2023, the World Bank accounted for 73.1% of Nigeria’s $21.15 billion multilateral debt inventory.
- The rising dependence on World Bank loans highlights the Federal Authorities’s continued shift towards concessional financing and program-based lending, significantly for large-scale reforms and growth interventions.
- Nevertheless, the rise additionally brings renewed scrutiny on debt sustainability, significantly amid income pressures, overseas alternate volatility, and the continued must ship tangible outcomes from loan-backed applications.
Whereas World Bank loans supply comparatively favorable phrases in comparison with business debt, Nigeria’s rising obligations require a powerful concentrate on fiscal self-discipline, transparency in undertaking execution, and sturdy monitoring to make sure long-term worth from the funds.
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