The World Bank Group Finances has disclosed that the Nigerian government is still repaying $10.6 billion in loans taken during the administrations of former Presidents Olusegun Obasanjo, the late Umaru Musa Yaradua, and Goodluck Jonathan.
This revelation comes amidst Nigeria’s growing debt concerns. In June 2024, the Debt Management Office reported that as of March 31, 2024, the country’s total domestic and external debt stood at N121.67 trillion ($91.46 billion). Of this, domestic debt accounted for N65.65 trillion ($46.29 billion), while external debt stood at N56.02 trillion ($42.12 billion).
Further investigation by *Saturday PUNCH* revealed that part of the external debt includes $4.95 billion in loans secured by the current administration within its first 12 months. Additionally, the Central Bank of Nigeria reported that $15.55 billion had been spent on debt servicing between 2019 and 2024.
The World Bank Group Finances platform, a digital initiative by the World Bank Group’s Finance and Accounting division, provided detailed information about the loans. It revealed that Nigeria is still repaying 69 different loans secured between 2000 and 2014.
These loans include funding for a wide range of projects, such as 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) from the year 2000.
In 2001, Nigeria secured loans for projects such as the Transmission Development Project ($100 million), Privatisation Support Project ($114 million), and HIV/AIDS Programme Development ($90.3 million).
By 2002, four additional loans totaling $438 million were obtained, including for the Second Health System Development ($127 million) and the Lagos Urban Transport Project ($100 million).
From 2003 to 2005, the government borrowed an additional $1.1 billion for various projects, including the Local Empowerment and Environmental Management Project ($70 million) and the Sustainable Management of Mineral Resources project ($120 million).
Between 2006 and 2014, the federal government secured another $8.3 billion in loans, which are also still being repaid. These loans supported projects such as the Lagos Metropolitan Development and Governance Project ($200 million) and the Malaria Control Booster Project ($180 million).
The loans, categorized under the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), are primarily aimed at supporting middle-income and low-income countries. The IBRD offers loans to creditworthy countries, while the IDA provides interest-free loans and grants to the poorest nations.
However, the report clarified that the loan list does not include Trust Funds, Financial Intermediary Funds (FIFs) Commitments, loans to the International Finance Corporation (IFC), or IBRD/IDA guarantees.
