Federal Government Repays $10.6bn in Loans from Past Administrations
The World Bank Group Finances has disclosed that the Federal Government of Nigeria is still repaying $10.6 billion in loans obtained during the administrations of former Presidents Olusegun Obasanjo, the late Umaru Musa Yar’Adua, and Goodluck Jonathan. These loans, which date back to the early 2000s, continue to weigh on the nation’s finances as Nigeria grapples with its substantial debt burden.
As of March 31, 2024, the Debt Management Office reported that Nigeria’s total domestic and external debt had reached N121.67 trillion ($91.46 billion). The domestic debt accounted for N65.65 trillion ($46.29 billion), while external debt stood at N56.02 trillion ($42.12 billion).
The World Bank Group Finances platform, a digital initiative offering public financial data, revealed that the Federal Government is currently repaying at least 69 different loans secured between 2000 and 2014. These loans were obtained for various development projects across the country during the tenures of the three former presidents.
Notable loans from 2000 include $60 million for the Community-Based Poverty Reduction Project, $55 million for the Second Primary Education Project, $20 million for the Economic Management Capacity Building Project, and $5 million for the Small Town Water Supply and Sanitation Programme Pilot Project.
In 2001, additional loans such as $100 million for the Transmission Development Project, $114 million for the Privatisation Support Project, and $90.3 million for the HIV/AIDS Programme Development were obtained. The following year, the government secured $438 million in loans for projects 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).
Between 2003 and 2005, Nigeria took on World Bank loans worth $1.1 billion, which are still being repaid. These include funds for the Local Empowerment and Environmental Management Project ($70 million), Second FADAMA Development Project ($100 million), and Sustainable Management of Mineral Resources ($120 million).
Further loans totaling $4 billion were secured between 2006 and 2010, followed by an additional $4.3 billion between 2011 and 2014. Some key projects funded during this period include the Lagos Metropolitan Development and Governance ($200 million), Avian Influenza Control and Human Pandemic Preparedness and Response Project for Nigeria ($50 million), and the Malaria Control Booster Project ($180 million).
The World Bank loans are categorized under the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). While the IBRD lends to middle-income and creditworthy low-income countries, the IDA provides interest-free loans and grants to the world’s poorest nations.
Despite the ongoing repayments, Nigeria’s debt continues to grow. The Central Bank of Nigeria reported that $15.55 billion was spent on debt servicing between 2019 and 2024, highlighting the financial strain imposed by both legacy and new debts.
It’s important to note that the loan list provided by the World Bank Group Finances does not include Trust Funds, Financial Intermediary Funds (FIFs) Commitments, loans to the International Finance Corporation (IFC), nor IBRD/IDA guarantees.
As the Federal Government continues to manage its debt obligations, these legacy loans represent a significant portion of Nigeria’s ongoing financial commitments, reflecting the long-term impact of past borrowing on the nation’s economy.
About Post Author
Views: 0
