World Bank, China… Here Are Nigeria’s Top Five Creditors

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Nigeria’s Debt Hits N42.8 Trillion Amid Shrinking Revenue
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The International Development Association (IDA) is Nigeria’s single biggest creditor, with a portfolio worth $12.54 billion, according to Debt Management Office (DMO) latest figures.

IDA, a member of the World Bank Group, is followed by China (Exim Bank of China) with $3.93 billion and International Monetary Fund (Fund) with $3.27 billion credit facilities.

While World Bank and IMF are multilateral lenders, the Exim Bank of China is a bilateral lender. Multilateral financing is a credit facility provided to a borrower by more than one lender on uniform terms and conditions using common documentation. Bilateral lending is usually between an individual and the lender.

In June 2022, Nigeria’s total public debt was N42.84 trillion ($103.31 billion) compared to N41.60 trillion ($100.07 billion).

Public debt consists of domestic and external debt stocks of the federal government, thirty-six states and the federal capital territory (FCT).

While the domestic debt stood at N26.23 trillion ($63.24 billion), the foreign debt stood at $40.06 billion (N16.61 trillion).

The federal government’s borrowing from the Central Bank of Nigeria (CBN) through Ways and Means Advances is not part of the public debt.

According to DMO, over 58 percent of the external debt stock are concessional and semi-concessional loans from multilateral lenders such as the World Bank, International Monetary Fund, Afrexim and African Development Bank and bilateral lenders, including Germany, China, Japan, India and France.

Public debt consists of domestic and external debt stocks of the federal government, thirty-six states and the federal capital territory (FCT).

While the domestic debt stood at N26.23 trillion ($63.24 billion), the foreign debt stood at $40.06 billion (N16.61 trillion).

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The federal government’s borrowing from the Central Bank of Nigeria (CBN) through Ways and Means Advances is not part of the public debt.

According to DMO, over 58 percent of the external debt stock are concessional and semi-concessional loans from multilateral lenders such as the World Bank, International Monetary Fund, Afrexim and African Development Bank and bilateral lenders, including Germany, China, Japan, India and France.

WHO ARE THE EXTERNAL LENDERS?

Eurobonds — $15.62 billion

MULTILATERAL LENDERS

International Monetary Fund (Fund) $3.27 billion

World Bank

International Development Association (IDA) — $12.57 billionInt’l Bank for Reconstruction and Development — $486 million

African Development Fund Group

African Development Bank — $1.55 millionAfrica Growing Together fund — $5.02 millionAfrica Dev Fund — $955.18 million

Arab Bank for Economic Development in Africa — $5.70 millionEuropean Development Fund — $39.35 millionIslamic Development Bank — $43.69 millionInternational Fund for Agric Development — $229.40 million

BILATERAL LENDERS

China (Exim Bank of China) — $3.93 billionFrance (Agence Francaise Cooperation Agency) — $60.65 millionIndia (Exim Bank of India) — $31.50 millionGermany (Kreditanstalt Fur Wiederaufbua) — $153.77 million

COMMERCIAL

Promissory Notes — $588.19 million

WHERE LOCAL BORROWING CAME FROM?

FGN Bonds — N15.19 trillionNigerian Treasury Bills — N4.50 trillionNigerian Treasury Bonds — N75.99 billionFGN Savings Bond — N20.87 billionFGN Sukuk — N612.56 billionGreen Bond — N25.69 billionPromissory Notes — N514.94 billion.

Zainab Ahmed, minister of finance, budget and national planning, had said Nigeria’s debt is still below the 40 percent threshold set by the government in the borrowing strategy.