According to findings by Foxiz Nigeria, Nigeria is now servicing World Bank debts totaling roughly $14.12 billion.
108 approved loans were included in the total, based on information our reporter found on the World Bank website.
Foxiz Nigeria noted that while the newest loan being serviced was granted in 2018 during the previous government of Muhammadu Buhari, the oldest loan being serviced dates back to 1989 under Gen. Ibrahim Babangida.
The oldest loan is the $100.9 million Multistate Agricultural Development Project (03), which was granted to support the execution of the state-wide Agricultural Development Projects with the goal of raising food and crop production as well as the income of small farmers.
Foxiz Nigeria noted that even though the project’s principal amount was listed as $100.9 million, a total of $106.7 million was disbursed.
As they were listed under “Disbursing & Repaying,” loans granted in 2018 were currently being serviced and disbursing funds.
The $125 million fiscal governance and institutions project was one of the loans, and it was authorised on June 27, 2018.
Approximately $40.17 million had been paid out as of the time our correspondent acquired the data for this loan deal.
The $750 million Fiscal Governance and Institutions Project, which was authorised on June 27, 2018, is another loan project that is now disbursing and repaying.
It was revealed that $737.13 million had been paid out on this loan.
On December 14, 2020, a further $750 million loan was granted as part of this financing deal.
This second approval, however, had not yet required payback and was in the process of being disbursed.
The $364 million loan and the $122 million loan issued in 2018 under the Electricity Transmission Project are now being repaid while disbursement is still going on, according to Foxiz Nigeria.
Foxiz Nigeria also discovered that over time, 68 loans totaling around $4.79 billion had been entirely repaid.
Nigeria had received loans from the World Bank’s International Bank for Reconstruction and Development and International Development Association over the years.
While the IDA offers grants and concessionary loans to governments of the world’s poorest nations, IBRD lends to governments of middle-income and creditworthy low-income nations.
A number of the loans are typically expected to be serviced by Nigeria starting five years after approval and continuing for up to 30 years.
Since the loans were typically for concessional purposes, their interest rates were lower and their servicing costs were lower.
For instance, the World Bank’s $800 million loan to provide post-petroleum subsidy palliatives for more than 50 million Nigerians carries a maximum commitment charge rate of 0.5 percent per year on the Unwithdrawn Financing Balance and a service charge of 0.75% per year on the Withdrawn Credit Balance.
