The World Bank Group Finances has revealed that Nigeria is still repaying a staggering $10.6 billion in loans obtained under former Presidents Olusegun Obasanjo, late Umaru Musa Yaradua, and Goodluck Jonathan.
This debt burden is part of the country’s total domestic and external debts, which stood at N121.67 trillion ($91.46 billion) as of March 31, 2024.
According to the World Bank’s digital platform, WBG Finances, the Federal Government is still servicing at least 69 different loans secured between 2000 and 2014. These loans include the Community Based Poverty Reduction Project ($60m), Second Primary Education Project ($55m), and Economic Management Capacity Building Project ($20m), among others.
The loans were obtained from the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank. While some of the loans have been partially repaid, others are still being serviced, with the government spending a total of $15.55 billion on debt servicing between 2019 and 2024.
The revelation raises concerns about Nigeria’s debt sustainability and the burden it places on the country’s finances. As the government continues to grapple with debt repayment, it remains to be seen how it will manage its finances to meet the needs of its citizens.
