Nigeria Debt Servicing Gulps $598.59 million in 2021

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CEM REPORT | The Federal Government of Nigeria in servicing debts owed to the World Bank and the Exim Bank of China in 2021 has spent a total of $598.59 million.

This is according to Debt Management Office, data analysis on actual external dabt service payment and reported by Arise TV.

The report stated that the country paid the World Bank a total of $390.92 million, which included $384.28 million to the International Development Association and $6.46 million to the International Bank for Reconstruction and Development.

The loans from World Bank were used to finance programme or infrastructure projects.

In June of 2016, Nigeria got a loan of $1.1 billion to fund the State Education Programme Investment Project, Community and Social Development Project, Nigeria Youth Employment and Social Support Project, State Health Investment Project, Third National Fadama Development Project, NG-Polio Eradication Support Project and the National Social Safety Nets Project.

In March of 2017, the World Bank approved a credit of $200 million for the implementation of the Agro-Processing, Agricultural Productivity Enhancement and Livelihood Improvement Support Project,

Also the same year, Nigeria received $150 million for Mineral Sector Support for Economic Diversification Project.

In 2018, a loan of $775 million was approved for Fiscal Governance and Institutions Project, Nigeria Erosion and Watershed Management Project (additional financing), Nigeria Polio Eradication Support Project (additional financing), Nigeria Electrification Project and the State Fiscal Transparency, Accountability and Sustainability scheme.

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While in December of 2020, a loan of $1.5 billion was loaned to Nogeria to fund two projects, namely the Nigeria COVID-19 Action Recovery and Economic Stimulus Programme and the State Fiscal Transparency, Accountability, and Sustainability Programme.

Meanwhile, the Exim Bank of China, was paid a total of $207.67 million for loans taken for different projects.

In a document titled ‘status of Chinese loans as of September 30, 2021’ published last week, the DMO disclosed that 15 projects ranging from water supply, power generation, railways, airport terminals, and communication to agricultural processing were funded with the acquired loans.

The document also revealed varying interest rates, which range from 2.5 per cent to 3 per cent, and are not solely fixed on 2.5 per cent as the DMO claimed in its statement in June 2020.

In another report, Nigeria spent $1.79bn in five years on servicing the debts owed to the World Bank and the Exim Bank of China.

As of December 2021, Nigeria still owes World Bank and China $12.38bn and $3.63bn respectively.

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