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Nigeria Now Ranks Fourth In The World Bank’s Top 10 Debtors

Nigeria is now ranked fourth among the top ten International Development Association borrowers by the World Bank, owing to rising debt.

Nigeria was ranked fifth in the World Bank’s Fiscal Year 2021 audited financial statements, known as the IDA financial statement, with a debt stock of $11.7 billion as of June 30, 2021.

However, according to the newly released World Bank Fiscal Year 2022 audited financial statements for IDA, Nigeria has risen to fourth place, with $13 billion in IDA debt stock as of June 30, 2022.

This demonstrates that the country accumulated approximately $1.3 billion in IDA debt within a fiscal year to replace Vietnam as the fourth largest debtor.

This debt is distinct from the $486 million loan from the World Bank’s International Bank for Reconstruction and Development.

Except for Nigeria, the top five countries on the list reduced their IDA debt stock slightly.

India, which remains at the top of the list, reduced its IDA debt stock from $22 billion in the previous fiscal year to $19.7 billion, followed by Bangladesh, which reduced its IDA debt stock from $18.1 billion to $18 billion.

Pakistan is next, having reduced its debt from $16.4 billion to $15.8 billion, followed by Nigeria and Vietnam, which reduced its IDA debt stock from $14.1 billion to $12.9 billion.

The World Bank recently stated that Nigeria’s debt, while currently considered sustainable, risks becoming unsustainable in the event of macro-fiscal shocks.