Nigeria is now on the fourth top debtor position of the International Development Association (IDA) borrowers list of the World Bank.
This was revealed in a newly released World Bank Fiscal Year 2022 audited financial statement known as the IDA financial statement.
The statement read that Nigeria has a $13bn IDA debt stock as of June 30, 2022, taking over the fourth top debtor position from Vietnam.
The World Bank Fiscal Year 2021 audited financial statements showed that Nigeria was rated fifth on the list with $11.7bn IDA debt stock as of June 30, 2021.
Consequently, the country has accumulated about $1.3bn IDA debt within a fiscal year.
This debt is different from the outstanding loan of $486m from the World Bank’s International Bank for Reconstruction and Development.
India, which is still the first on the list reduced its IDA debt stock from $22bn in the previous fiscal year to $19.7bn, followed by Bangladesh from $18.1bn to $18bn.
Pakistan, also, cut its debt from $16.4bn to $15.8bn, and again, Vietnam, which went down the list to the fifth position, from $14.1bn to $12.9bn.
The report further reveals that Nigeria has the highest IDA debt in Africa.
“Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria”, the World Bank stated.
The Bank further expressed concerns over the nation’s cost of debt servicing, which according to it, disrupted public investments and critical service delivery spending.