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The current Federal Government is steadily defraying loan obligations contracted with the World Bank by the past administrations, which are said to be about 69 in total.
While the World Bank confirmed the government’s loan position, an independent check by the Sunday Telegraph at the Debt Management Office ( DMO) affirmed the position.
The current administration headed by President Bola Ahmed Tinubu came on to the saddle on May 29, 2023.
The World Bank’s loans are concessional loans extended on softer terms than market loans. They are largely a near zero interest rate payment loans with a long period repayment window.
According to the World Bank, the Federal Government is still repaying loans obtained under former Presidents Olusegun Obasanjo, Umaru Musa Yaradua, and Goodluck Jonathan.
In May 29, 2023, President Tinubu inherited a whopping $113billion debt (foreign and domestic). The administration is said to have reduced the bulk to $91.46 billion by March 2024, indicating $22 billion reduction.
The World Bank Group Finances platform revealed that the Federal Government is repaying at least 69 different loans secured between 2000 and 2014. These loans fall under the International Bank for Reconstruction and Development and the International Development Association, which are part of the World Bank.
In 2000, some of the World Bank’s loans secured by the Nigeria government included, community based poverty reduction project ($560 million); second Primary Education Project ($55 million), economic management capacity building project ($520 million) and a small town water supply and sanitation programme pilot project of $55 million.
In 2001, World Bank facilities to the Nigeria government included transmission development project of $100 million; privatisation support project of $114 million; HIV/AIDS Programme Development ($90.3 million). In 2002, the Federal Government obtained four loans totaling $438 million. These were: second health system development project of $127 million; community-based urban development project of $110 million; Lagos urban transport project ($100 million) and
Universal Basic Education Project of $101 million.
According to the World Bank record between 2003 and 2005, the government obtained World Bank loans worth $1.1 billion. The loans were facilitated in the following areas: Local empowerment and environmental management project ($70 million); Second Fadama development project ($100 million); Micro, Small and Medium Enterprises Project of $532 million,
Federal Government Economic Reform and Governance Project ($140 million) and Sustainable Management of Mineral Resources at $120 million.
Sources at Debt Management Office (DMO) confirmed the authenticity of the World Bank loan status and repayments by the current administration to Sunday Telegraph over the week.
It would be recalled that the global bank in June 2024, approved a $2.25 billion loan for Nigeria to shore up revenue and support economic reforms that had contributed to the worst cost-of-living crisis in many years for Africa’s most populous country.
The bank had in a statement, said that the bulk of the loan — $1.5 billion — would help protect millions who have faced growing poverty since a year ago, when President Bola Tinubu came to power and took drastic steps to fix the country’s ailing economy.
