The World Bank has disclosed that Nigeria was the top recipient of its fresh loans in 2022, with about $2.9 billion released to the country.
According to its International Debt Report for 2023, Nigeria was followed by Tanzania, which got $2.7 billion in the same year.
The report read:
Data from the external debt stock report of the Debt Management Office (DMO) shows that Nigeria owes the World Bank a total of $14.51 billion as of June 30, 2023.
In a statement announcing the publication of the report on Wednesday, the World Bank warned that the poorest countries are at risk of debt crises due to the surge in global interest rates.
It added that the rise in borrowing costs has diverted scarce resources away from critical needs such as education, health, and the environment.
The statement read:
The Bretton Woods Institution said that rising interest rates have made all developing nations more vulnerable to debt. There have been more sovereign defaults in the last three years than in the entire preceding two decades, affecting ten developing nations. Approximately 60% of low-income nations are currently in or at high risk of entering debt distress.
The World Bank also noted the effect of a stronger US dollar on debt service payments for developing countries.
The report read:
Speaking on the high-interest rates, the World Bank Group’s Chief Economist and Senior Vice President, Indermit Gill, said:
