Under the administration of President Bola Tinubu, Nigeria has reportedly borrowed over $1.95 billion from the World Bank, despite growing concerns about the country’s rising debt burden. Data from the Debt Management Office reveals that Nigeria’s total public debt has increased to N87.37 trillion at the end of June 2023, representing a 103.93% year-on-year increase compared to N42.84 trillion in June 2022.
Details of the loans obtained from the World Bank during President Tinubu’s tenure include:
1. **Power Project Loan ($750 million):** On June 19, 2023, the federal government secured a $750 million loan from the World Bank to facilitate power projects across the nation. The loan, approved on June 9, 2023, is the first World Bank loan obtained under President Tinubu’s administration. It is intended for the power sector recovery performance-based operation, with financing running from 2023 to June 30, 2027. The loan justifies addressing the lack of access to the electricity grid affecting a significant portion of the population.
2. **Women Empowerment Loan ($500 million):** On June 27, 2023, the World Bank Group approved a $500 million loan for women empowerment programs. This marks the second loan approved under President Tinubu’s leadership, and the financing aims to support the government of Nigeria in improving the livelihoods of women.
3. **Educating Adolescent Girls Loan ($700 million):** The most recent loan, amounting to $700 million, was approved in September 2023 to enhance educational opportunities and empowerment for adolescent girls in Nigeria. The loan is additional financing for the ongoing Adolescent Girls Initiative for Learning and Empowerment (AGILE) program.
Additionally, the data reveals that the federal government paid $1.17 billion to service foreign debt commitments in the first half of 2023, as reported in the Export and International Payment data released by the Central Bank of Nigeria (CBN).
The increasing debt levels have raised concerns among Nigerians and international bodies about the country’s ability to manage its financial obligations and sustain economic stability.
