According to a research study by the Nigerian news outlet Punch Ng, Nigeria's borrowing from the World Bank increased by 121.46% under the 8 year tenure of the country’s current president, Major General Muhammadu Buhari (retd.).
According to information obtained by the news outlet, Nigeria's overall debt to the World Bank Group increased by $7.64 billion (or N3.52 trillion, using the Central Bank of Nigeria's exchange rate, which was N460.53 per dollar as of April 23, 2023) over the course of seven years.
According to information from the Debt Management Office's external debt stock reports, the country's debt to the World Bankincreased from $6.29 billion (N2.9 trillion) in December 2015 to $13.93 billion (N6.42 trillion) in December 2022.
Nigeria has received loans from the World Bank's International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD) over the years.
While the IDA offers grants and concessionary loans to governments of the world's poorest nations, the IBRD lends to governments of middle-income and creditworthy low-income nations.
According to the statistics, Nigeria owes $6.29 billion to IDA and $3.57 billion to IBRD as of 2016, but by 2022, IDA's debt to Nigeria would be $13.45 billion and IBRD's would be $487.03 million.
The World Bank often links the loans it approves to Nigeria to several projects spread around the nation.
For instance, it was decided to co-finance the Nigeria Rural Access and Agricultural Marketing Project in 2020 with $280 million from the International Development Association (IDA), $230 million from the French Development Agency, and $65 million from the Federal Government of Nigeria. The project aims to upgrade rural roads, improve connectivity and access to local markets and agribusiness services in 13 states.
According to reports, Nigeria moved up the list of the top 10 International Development Association borrowers due to mounting debt.
Nigeria was ranked fifth on the list with $11.7 billion in IDA debt stock as of June 30, 2021, according to the World Bank's Fiscal Year 2021 audited financial statements, also known as the IDA financial statement.
Nigeria has climbed up to fourth place on the list, according to the World Bank's recently issued Fiscal Year 2022 audited financial records for IDA, with a $13 billion IDA debt stock as of June 30, 2022.
This demonstrates that Nigeria, which replaced Vietnam as the fourth-largest debtor, accrued roughly $1.3 billion in IDA debt in a fiscal year.
This debt is distinct from the unpaid loan from the International Bank for Reconstruction and Development of the World Bank.
Except for Nigeria, the top five nations on the list all marginally decreased their IDA debt stock. Recently, the World Bank revealed that Nigeria's debt, while perhaps manageable for the time being, is risky and expensive.
“Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria,” the bank stated.