Nigeria’s debt to World Bank rises by $1.07 billion under Tinubu’s administration- DMO

Nigeria now owes the World Bank $1.07 billion more than it did when President Bola Tinubu took office.

Debt increased by 7%, from $14.51 billion at the end of the second quarter of 2023 to $15.59 billion by the end of the first quarter of 2024, according to an analysis of data from the Debt Management Office (DMO).

The World Bank Group’s International Development Association (IDA) saw the biggest rise in its financing to Nigeria of all its divisions.

The IDA’s loans to Nigeria grew from $14.03 billion in Q2 2023 to $15.10 billion in Q1 2024, a rise of approximately $1.08 billion.

On the other hand, the International Bank for Reconstruction and Development (IBRD) saw a slight decrease in its loans to Nigeria, from $485.75 million to $484.81 million over the same period.

While the increase in borrowing is notable, Nigeria’s debt servicing costs have also been significant, almost matching the amount borrowed.

Over the four quarters from Q2 2023 to Q1 2024 under Tinubu’s administration, Nigeria has spent a total of $1.06 billion on debt servicing for its World Bank loans.

The International Development Association (IDA) has been a significant source of loans for Nigeria, and the debt servicing costs for these loans have been substantial. Over the four quarters from Q2 2023 to Q1 2024, Nigeria spent a total of $629.4 million on servicing its debt to the IDA.

In addition to the IDA, Nigeria also incurred debt servicing costs to the International Bank for Reconstruction and Development (IBRD), totaling $432.24 million over the same period.

The total debt servicing cost for both IDA and IBRD amounts to $1.06 billion, which is almost equivalent to the $1.07 billion borrowed in the same timeframe.