Nigeria’s external debt to the World Bank has surged by 120% under President Muhammadu Buhari-led administration, according to data released by the Debt Management Office (DMO).
BrandNewsDay reports that the figures by the DMO show that Nigerian World Bank debt has risen from $6.67 billion in 2015 to $14.25 billion in June 2021, demonstrating a significant increase of over 120%.
However, the significant increase in Nigeria’s World Bank debt under Buhari’s regime has raised concerns about the country’s ability to repay its debts.
Nigeria’s debt-to-GDP ratio has also risen from 12.1% in 2015 to 23.3% in 2020, indicating a worrying trend of rising debt levels.
The DMO has defended Nigeria’s rising debt levels, stating that the funds are being used to finance critical infrastructure projects across the country, which will help to boost economic growth and development in the long run. However, critics have argued that the government needs to do more to increase its revenue base and reduce its reliance on loans.
The increasing debt levels in Nigeria are also a cause for concern for investors and international financial institutions, who are closely monitoring the country’s economic situation.
The World Bank has warned that Nigeria’s debt sustainability outlook remains vulnerable, and the government needs to take urgent action to address the issue.
The World Bank is a major international financial institution that provides loans and grants to developing countries for various developmental projects, including infrastructure, health, education, and agriculture. Nigeria has been one of the biggest beneficiaries of World Bank loans over the years, receiving several billion dollars in funding for various projects.
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