Over the past year, the Federal Government of Nigeria has borrowed a total of $4.95 billion in loans from the World Bank, leading to a rise in the nation’s public debt to approximately N101 trillion. This surge in borrowing has raised concerns about the escalating costs associated with servicing external debt, especially amidst economic challenges.
Data from the Debt Management Office indicates that Nigeria’s public debt stood at around N97 trillion as of December 2023. Despite this substantial debt burden, the government is anticipating fresh loan approvals totaling $4.4 billion from both the World Bank and the Africa Development Bank within the coming year.
The loans obtained from the World Bank have been allocated to various projects aimed at addressing critical areas such as power sector financing, women empowerment, girl child education, renewable energy solutions, resource mobilization reforms, and economic stabilisation reforms. These projects reflect the government’s efforts to tackle pressing socio-economic issues and drive sustainable development across different sectors of the economy.
Source: Punch