A financial report released by the World Bank has ranked Nigeria as the third-largest debtor to the Bank’s International Development Association (IDA) as of June 30, 2024.
The report shows that Nigeria’s debt to the IDA increased to $16.5 billion by the end of June, marking a $2.2 billion rise, or 14.4%, compared to the $14.3 billion owed at the close of 2023.
The IDA, a critical division of the World Bank, provides low-interest loans and grants to the world’s poorest nations to foster economic growth, reduce inequalities, and enhance living standards. These loans typically come with favorable terms, including long repayment periods and minimal interest.
At the top of the IDA debtor list is Bangladesh, with $20.5 billion in loans, followed by Pakistan, which owes $17.5 billion.
Nigeria has overtaken India, which now holds the fourth position with $15.9 billion, down from $17.9 billion in 2023. Ethiopia, Kenya, and Vietnam are next in line, with debts of $12.2 billion, $12.0 billion, and $12.0 billion, respectively.
The lowest-ranking countries on the list are Tanzania with $11.7 billion, Ghana with $6.7 billion, and Uganda with $4.8 billion.
“As of June 30, 2024, the ten countries with the highest exposures accounted for 63% of IDA’s total exposure.
“Monitoring these exposures relative to the SBL requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees,” the World Bank said. Recall that the Debt Management Office (DMO) reported that Nigeria’s total public debt increased to N121.67 trillion in the first quarter of 2024, compared to the N97 trillion recorded in December 2023.
According to DMO, the increase was primarily due to new domestic borrowing by the federal government to partly fund the deficit in the 2024 budget as well as disbursements by multilateral and bilateral lenders.
The debt office said total domestic debt was N65.65 trillion ($46.29 billion), while total external debt was N56.02 trillion ($42.12 billion).
It is therefore important that we remind you that it is our responsibility to grapple with the apparent challenges that have befallen our nation and its continuing use to beggar and humiliate our people and workers.
“You must not therefore allow yourself to become an instrument for the pauperization of the workers that you lead. You must not allow this process to be turned into a tool to deprive and cheat already suffering workers from the benefits that may accrue to them. Congress will severely sanction any state council that colludes with employers whether public or private to cheat workers out of their benefits.”
“I believe that the same mind that was in us at the national level will be in all of you here so that we will have a successful implementation round.”
As we head to the negotiation table, we must begin to organize and mobilize now. “We must remain vigilant, informed, and united. This Workshop is an essential step in that process.”
“It is a space for us to discuss strategies, share knowledge, and build the networks that will sustain our efforts towards having a better result than the 2019 cycle. Learn from what we did and be comforted that we have remained unflinching in the face of persecution by the state.”
Ajaero added “Like we have said before, ours is a divine mandate! God knows the purpose for making us leaders of the labour movement at this time in our nation. We have stood firm and have not betrayed you. You will stand firm, you will not betray workers and you will not betray man. You will not betray God. At the end of the day, the people we lead will define us based on how we handle this exercise – Heroes or betrayers. The choice is ours.”