Nigeria’s public debt has surged to N101 trillion, fueled by recent borrowings totalling $4.95 billion from the World Bank over the past year.
This increase, coupled with anticipated loans worth $4.4 billion, has raised concerns about the sustainability of the country’s debt and the escalating costs of servicing external debt.
According to data from the Debt Management Office (DMO), Nigeria’s public debt was approximately N97 trillion as of December 2023.
The substantial rise in debt has been driven by multiple loans from international lenders to fund various socio-economic projects.
In the past year, the World Bank has approved several loans for Nigeria, aimed at addressing critical infrastructure and social issues.
On June 9, 2023, the World Bank approved a $750 million loan to enhance Nigeria’s power sector performance.
On June 27, 2023, a $500 million loan was approved to scale up the Nigeria for Women Programme.
In September 2023, the World Bank granted a $700 million loan for the Adolescent Girls Initiative for Learning and Empowerment project, aimed at improving educational opportunities for girls.
On December 14, 2023, a $750 million loan was approved to boost electricity access through distributed renewable energy solutions.
The latest funding, totalling $2.25 billion, includes $1.5 billion for economic stabilization reforms and $750 million to enhance non-oil revenues and protect oil and gas revenue.
The Nigerian government also expects additional loans, including a $500 million loan to improve connectivity and market access.
A $750 million loan contingent on the reintroduction of previously suspended taxes, a $500 million loan to address challenges faced by IDPs and a $2.7 billion loan from the African Development Bank (AfDB) for economic and budget support.
