WORLD BANK LISTS NIGERIA, OTHERS AS COUNTRIES WITH HIGH DEBT RISK EXPOSURE
By: Emmanuel Adefeso Esq.
The World Bank has stated that Nigeria is among a list of top 10 countries with high debt risk exposure. The World Bank FY21 audited financial statements recently released, contained 10 countries with the highest exposures which accounted for 66 per cent of IDA’s total exposure.
Nigeria was rated fifth on the list with $11.7bn IDA debt stock, while India led the list with $22bn IDA debt stock, followed by Bangladesh with $18.1bn IDA debt stock, Pakistan with $16.4bn IDA debt stock, and Vietnam with $14.1bn IDA debt stock. Other countries on the list in order of appearance included Ethiopia with $11.2bn IDA debt stock, Kenya with $10.2bn IDA debt stock, Tanzania with $8.3bn IDA debt stock, Ghana with $5.6bn IDA debt stock, and Uganda with $4.4bn IDA debt stock.
The World Bank is like a cooperative, made up of 189 member countries. It is an international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects. Indeed, Nigeria’s high debt profile is an issue for urgent concern as dwindling oil revenue may make pragmatic debt servicing an unrealistic feat to attain in the foreseeable future because a huge percentage of revenue would be used to service the humongous debts.
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