Photo: World Bank complex
The World Bank says Nigeria has moved to the fourth position on the top 10 International Development Association (IDA) borrowers’ list, with a $13bn IDA debt stock due to the country’s spiraling debt profile.
This is according to the newly released World Bank Fiscal Year 2022 audited financial statements for IDA as of June 30, 2022.
Nigeria was ranked fifth in the World Bank Fiscal Year 2021 audited financial statements, known as the IDA financial statement, with $11.7 billion IDA debt stock as of June 30, 2021.
The latest IDA financial statement indicates that Nigeria accrued about $1.3bn IDA debt within the last fiscal year to take over the fourth top debtor position from Vietnam.
This debt is different from the outstanding loan of $486m from World Bank’s International Bank for Reconstruction and Development.
According to the report, the top five countries on the list slightly reduced their IDA debt stock, except Nigeria.
It says that India, which still tops the list, reduced its IDA debt stock from $22bn in the previous fiscal year to $19.7bfollowed by Bangladesh from $18.1bn to $18bn.
Pakistan, which cut its debt from $16.4bn to $15.8bn, is third followed by Nigeria in fourth position.
Viettnam, which cut its IDA debt stock from $14.1bn to $12.9bn, follows suit in fifth position.
The World Bank also warns that Nigeria’s skyrocketing debt risks becoming unsustainable with devastating economic consequences in the event of macro-fiscal shocks.
