On the most recent list of the top 10 borrowers from the International Development Association (IDA), Nigeria has climbed one rank.
The World Bank’s IDA division provides assistance to the world’s poorest nations.
Nigeria, with a $13 billion debt as of June 30, 2022, is the fourth most indebted nation, according to the organization’s most current financial disclosures.
Nigeria finished fifth on the list last year with a debt stock of $11.7 billion, but it added $1.3 billion in debt in only one year.
As a result of the change, Vietnam’s debt, which had previously held the fourth spot on the list of debtors, has been eclipsed by Nigeria’s debt.
Nigeria is facing existential threat – World Bank warns
The $486 million in unpaid debt Nigeria owes to the International Bank for Reconstruction and Development (IBRD), a different organization under the World Bank Group, is distinct from the IDA debt.
As a result of the change, Vietnam’s debt, which had previously held the fourth spot on the list of debtors, has been eclipsed by Nigeria’s debt.
The $486 million Nigerian debt to the International Bank for Reconstruction and Development (IBRD), a separate entity within the World Bank Group, is distinct from the IDA loan.
India, Bangladesh, Pakistan, Nigeria, Vietnam, Ethiopia, Kenya, Tanzania, Ghana, and Uganda are the top 10 IDA borrowers.
Checks revealed that, with the exception of Nigeria, the top five countries on the list lowered their debts within a year.
The debt of India was decreased from $22 billion in 2021 to $19.7 billion in 2022, that of Bangladesh from $18.1 billion to $18 billion, that of Pakistan from $16.4 billion to $15.8 billion, and that of Vietnam from $14.1 billion to $12.9 billion.
The World Bank recently stated that Nigeria’s rising gasoline subsidies could raise questions about the country’s ability to service its debt.
The Bretton-Woods institution warned that the risk of rising fuel subsidies, which might have a negative impact on state finances and raise questions about the sustainability of debt, remains high.
