Details of Shocking Billions of Dollars Loans Federal Government is Still Repaying; Borrowed from Past Administrations, World Bank Reports
The World Bank Group Finance has disclosed that the Federal Government of Nigeria is currently servicing $10.6 billion in loans taken out by former Presidents Olusegun Obasanjo, Umaru Musa Yaradua, and Goodluck Jonathan.
In June 2024, the Debt Management Office reported that as of March 31, 2024, Nigeria’s total debt—both domestic and external—amounted to N121.67 trillion ($91.46 billion). Domestic debt was recorded at N65.65 trillion ($46.29 billion), while external debt stood at N56.02 trillion ($42.12 billion).
According to data gathered by Saturday PUNCH, part of the foreign debt includes $4.95 billion in loans secured by the current administration within its first year. Additionally, the Central Bank of Nigeria reported that $15.55 billion was expended on debt servicing between 2019 and 2024.
The World Bank Group Finance platform, which provides public financial data and portfolio information from across all World Bank Group entities, revealed that the Federal Government is still repaying at least 69 loans secured between 2000 and 2014.
Loans being repaid from 2000 include the Community Based Poverty Reduction Project ($60 million), Second Primary Education Project ($55 million), Economic Management Capacity Building Project ($20 million), and Small Town Water Supply and Sanitation Programme Pilot Project ($5 million).
For 2001, outstanding loans include the Transmission Development Project ($100 million), Privatisation Support Project ($114 million), and HIV/AIDS Programme Development ($90.3 million).
In 2002, the government took out four loans totaling $438 million, including the Second Health System Development ($127 million), Community-Based Urban Development Project ($110 million), Lagos Urban Transport Project ($100 million), and Universal Basic Education Project ($101 million).
From 2003 to 2005, the government secured $1.1 billion in World Bank loans, including the Local Empowerment and Environmental Management Project ($70 million), Second FADAMA Development Project ($100 million), Micro, Small and Medium Enterprises Project ($32 million), Federal Government Economic Reform and Governance Project ($140 million), and Sustainable Management of Mineral Resources ($120 million).
Between 2006 and 2010, the government obtained $4 billion in loans, followed by an additional $4.3 billion in loans from 2011 to 2014, all of which are still being serviced as of June 30, 2024.
Loans from this period include the Lagos Metropolitan Development and Governance Project ($200 million), Avian Influenza Control and Human Pandemic Preparedness and Response Project for Nigeria ($50 million), and Malaria Control Booster Project ($180 million), all secured in 2006.
The platform categorized these loans under the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), components of the World Bank. While IBRD provides loans to middle-income and creditworthy low-income countries, IDA offers interest-free loans and grants to the poorest nations.
The list does not account for Trust Funds, Financial Intermediary Funds (FIFs) Commitments, loans to the International Finance Corporation (IFC), or IBRD/IDA guarantees.
