The World Bank has revealed that Nigeria is still repaying a whopping $10.6 billion in loans obtained by former presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, and Goodluck Jonathan. According to the World Bank Group Finances, the loans were taken between 2000 and 2014 and are still being repaid as of June 30, 2024.
“This is a clear indication of the unsustainable borrowing habits of our past leaders,” said a financial analyst. “It’s unfortunate that we’re still paying for the mistakes of the past.”
The Debt Management Office (DMO) reported in June 2024 that Nigeria’s total domestic and external debt stood at N121.67 trillion ($91.46 billion), with domestic debt amounting to N65.65 trillion ($46.29 billion) and external debt at N56.02 trillion ($42.12 billion).
“It’s alarming that we’re spending a significant amount on debt servicing,” said a concerned citizen. “Imagine what we could achieve if we invested that money in our infrastructure, education, and healthcare.”
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The Central Bank of Nigeria revealed that $15.55 billion was spent on debt servicing between 2019 and 2024. The World Bank loans still being repaid include the Community Based Poverty Reduction Project, Second Primary Education Project, Economic Management Capacity Building Project, and Small Town Water Supply and Sanitation Programme Pilot Project, among others.
“This is a wake-up call for our leaders to prioritize prudent borrowing and fiscal responsibility,” said an economist. “We can’t keep passing the burden of debt to future generations.”
The World Bank platform provides public access to financial data and portfolio information from all WBG entities, highlighting the need for transparency and accountability in government borrowing.