The World Bank through the International Development Association’s financial statement, which was among the World Bank FY21 audited financial statements has listed 10 countries with high debt risk exposure, with Nigeria as one of the top ten.
Nigeria ranked fifth on the list with $11.7 billion in IDA debt stock, while India ranked first with $22 billion in IDA debt stock, followed by Bangladesh with $18.1 billion, Pakistan accounting for $16.4 billion and Vietnam with $14.1 billion in IDA debt stock.
Other countries listed are Ethiopia accounting for $11.2 billion in IDA debt stock, Kenya had $10.2 billion, followed by Tanzania with $8.3 billion, Ghana with $5.6 billion and Uganda with a total of $4.4 billion in IDA debt stock.
It was further discovered that Nigeria’s undisbursed balance with the World Bank is approximately $8.656bn as at June 30, 2021.
The International Bank for Reconstruction and Development revealed that Nigeria has a total of $589m undisbursed balance, consisting of $500m loans approved but not yet signed and $89m signed loan commitment.
Also, it states that even though a certain amount of loans has been agreed upon, “the loans are not effective and disbursements do not begin until the borrowers and/or guarantors take certain actions and furnish documents.”
Likewise, the financial statement for IDA disclosed that Nigeria had a total undisbursed balance of $8.07bn, consisting of $1.462bn loans approved but not yet signed and $6.61bn signed loan commitment.
Nigeria and the World Bank’s IBRD agreed to a total of $1 billion in loans, with Nigeria’s outstanding loan amounting to $411 million.
Other financial statements released included the statements for International Finance Corporation and Multilateral Investment Guarantee Agency.
According to the World Bank Group President, David Malpass, said “The World Bank Group support to client countries surged to $157bn over the last 15 months to address increased poverty, inequality, and the impacts of COVID-19.”
He added that the unprecedented level of commitments assisted countries in supporting jobs and businesses, strengthening health systems, laying the groundwork for a green, resilient and inclusive recovery, protecting the poor and vulnerable and promoting economic growth