Nigeria still serving $10.6billion loans taken by ex-presidents – World bank

The World Bank Group has revealed that the Nigerian government is still repaying $10.6 billion in loans acquired during the tenures of former Presidents Olusegun Obasanjo, the late Umaru Musa Yar’Adua, and Goodluck Jonathan.

A total of 69 loans were secured under these administrations, contributing to the country’s current debt obligations.

According to a report by the Debt Management Office (DMO) in June 2024, as of March 31, 2024, Nigeria’s total domestic and external debt reached N121.67 trillion ($91.46 billion). Of this amount, domestic debt accounted for N65.65 trillion ($46.29 billion), while external debt stood at N56.02 trillion ($42.12 billion).

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It was learnt part of the foreign debt includes $4.95 billion in loans acquired by the current President Bola Tinubu-led administration during its first 12 months.

Additionally, the Central Bank of Nigeria revealed that a total of $15.55 billion was spent on debt servicing between 2019 and 2024.

The WBG Finances platform, a digital initiative of the World Bank Group Finance and Accounting, has further revealed that the Federal Government is still repaying at least 69 different loans obtained between 2000 and 2014.

This platform provides public access to financial data and portfolio information from all WBG entities.

Among the World Bank loans still being repaid are the Community Based Poverty Reduction Project ($60 million), Second Primary Education Project ($55 million), Economic Management Capacity Building Project ($20 million), and Small Town Water Supply and Sanitation Programme Pilot Project ($5 million), all obtained in 2000.

For 2001, loans include the Transmission Development Project ($100 million), Privatisation Support Project ($114 million), and HIV/AIDS Programme Development ($90.3 million).

In 2002, the Federal Government secured four loans totaling $438 million, including the Second Health System Development ($127 million), Community-Based Urban Development Project ($110 million), Lagos Urban Transport Project ($100 million), and Universal Basic Education Project ($101 million).

Between 2003 and 2005, the government obtained World Bank loans totaling $1.1 billion, which are still being repaid.

These loans include the Local Empowerment and Environmental Management Project ($70 million), Second FADAMA Development Project ($100 million), Micro, Small and Medium Enterprises Project ($32 million), Federal Government Economic Reform and Governance Project ($140 million), and Sustainable Management of Mineral Resources ($120 million).

Similarly, the government secured $4 billion in loans between 2006 and 2010, and $4.3 billion between 2011 and 2014, all of which are still being repaid as of June 30, 2024, when the platform was last updated.

Some of these loans include the Lagos Metropolitan Development and Governance Project ($200 million), Avian Influenza Control and Human Pandemic Preparedness and Response Project for Nigeria ($50 million), and Malaria Control Booster Project ($180 million), all secured in 2006.

According to the platform, these loans are categorized under the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), both components of the World Bank.

The IBRD lends to middle-income and creditworthy low-income countries, while the IDA provides interest-free loans and grants to the world’s poorest countries.

But the list of loans does not include Trust Funds, Financial Intermediary Funds (FIFs) Commitments, loans to the International Finance Corporation (IFC), or IBRD/IDA guarantees.