Debt service: Nigeria paid $598.59 million to World Bank and China in 2021

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Nigeria spent $598.59 million servicing debts owed to the World Bank and the Exim Bank of China in 2021, according to an analysis of data on actual external debt service payments from the Bureau of debt.

The country has contributed a total of $390.92 million to the World Bank, including $384.28 million to the International Development Association and $6.46 million to the International Bank for Reconstruction and Development.

A total of $207.67 million was disbursed to the Exim Bank of China, for various projects for which loans were taken out.

The federal government had sought loan facilities from Chinese lenders to implement several infrastructure projects.

In a new document titled ‘State of Chinese Loans as of September 30, 2021’ released last week, the DMO revealed that 15 projects have been funded with the acquired loans.

These projects range from water supply, power generation, railways, airport terminals and communications to agricultural transformation.

The document also showed that there are variable interest rates, which range from 2.5% to 3%, and are not only fixed at 2.5% as the DMO claimed in its June statement. 2020.

Most World Bank loans were also linked to an infrastructure program or project.

On December 14, 2020, for example, the World Bank approved a $1.5 billion loan for Nigeria for two projects, namely Nigeria’s COVID-19 Recovery and Economic Recovery Action Program and the state’s fiscal transparency, accountability and sustainability agenda.

On June 27, 2018, the bank had approved a $775 million loan for the Governance and Fiscal Institutions Project, the Nigeria Erosion and Watershed Management Project (Additional Financing), the Polio Eradication Support in Nigeria (additional funding), the Nigeria Electrification Project and the State Fiscal Transparency, Accountability and Sustainability Program.

On March 23, 2017, the bank approved a credit of 200 million dollars for the implementation of the project to support agro-industry, improve agricultural productivity and improve livelihoods , while a $150 million credit was offered for the Mining Sector Support Project for Economic Diversification on April 14. same year.

On June 7, 2016, the bank approved a credit of $1.1 billion as supplementary financing to finance the State Education Program Investment Project, the Community and Social Development Project, the Youth Employment and Social Support Project in Nigeria, the State Health Investment Project, the Third Fadama National Development Project, NG-Polio Eradication Support Project and National Project social safety nets.

In an earlier Punch report, it was revealed that Nigeria had spent $1.79 billion over five years to repay debts owed to the World Bank and the Exim Bank of China.

As of December 2021, Nigeria still owed the World Bank and China $12.38 billion and $3.63 billion respectively.

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