Nigeria now ranks fourth in the World Bank’s top 10 International Development Association borrowers’ list, no thanks to rising debt.
Nigeria was ranked fifth in the World Bank Fiscal Year 2021 audited financial statements, known as the IDA financial statement, with $11.7 billion IDA debt stock as of June 30, 2021.
However, the newly released World Bank Fiscal Year 2022 audited financial statements for IDA showed that Nigeria has moved to the fourth position on the list, with $13bn IDA debt stock as of June 30, 2022.
This shows that the country accrued about $1.3bn in IDA debt within a fiscal year to take over the fourth top debtor position from Vietnam.
This debt is different from the outstanding loan of $486m from the World Bank’s International Bank for Reconstruction and Development.
The top five countries on the list slightly reduced their IDA debt stock except for Nigeria.
India, which still tops the list, reduced its IDA debt stock from $22bn in the previous fiscal year to $19.7bn, followed by Bangladesh from $18.1bn to $18bn.
Pakistan comes next, after cutting its debt from $16.4bn to $15.8bn, followed by Nigeria, then Vietnam, which cut its IDA debt stock from $14.1bn to $12.9bn.
The World Bank disclosed recently that Nigeria’s debt, which may be considered sustainable for now, risks becoming unsustainable in the event of macro-fiscal shocks.