The World Bank loan commitment to Nigeria has risen to $6.29bn, statistics from the Debt Management Office have shown.
According to the latest debt figures from the DMO, the World Bank’s total commitment to the country as of December 31, 2015 stood at $6.29bn.
The bank’s confidence in the nation’s economy has been improving and this has reflected in its loan commitment to the country. As of December 31, 2011, the country’s exposure to the World Bank stood at $3.94bn.
This means that within a period of four years, the bank’s portfolio in the country grew by $2.35bn. This shows an increase of 59.64 per cent within the period.
With $6.29bn, the World Bank Group is Nigeria’s highest external creditor. The group’s loans to the country showed that while the substantial amount came from the International Development Association, only $3.57m came from the International Bank for Reconstruction and Development.
The IDA is the part of the World Bank that helps the globe’s poorest countries through concessionary loans, while the IBRD gives loans on commercial basis to countries that have the capacity for repayment.
Established in 1960, the IDA aims to reduce poverty by providing loans (credits) and grants for programmes that boost economic growth, reduce inequalities, and improve people’s living conditions.
As of December 31, 2015, Nigeria’s external debt balance stood at $10.72bn. This means that the World Bank holds 58.72 per cent of the nation’s total external debt profile.
Other multilateral agencies that contributed to the country’s growing external debt profile include the African Development Bank, $400m; African Development Fund, $672.44m; Arab Bank for Economic in Africa, $5.2m; the EDF, $72.47m; Islamic Development Bank, $20.33m; and the International Bank for Agricultural Development, $96.42m.
Altogether, the multilateral development agencies account for $7.56bn or 70.54 per cent of the country’s external debt commitment.
Bilateral commitments account for 15.47 per cent of the nation’s external debts. These include $1.44bn from the EXIM Bank of China; $157.96m from the Agence Francaise de Development; $43.88m from the Japan International Cooperation Agency; and $11.44m from Germany’s KFW.
