The World Bank Financial disclosed data showing that Nigeria at moment is ranked fourth among world top debtors in the world. Nigeria with an IDB debt stock of $13bn since June 30, 2022, has become the highest debtor nation in Africa, according to audited financial statements for International Development Association (IDA) release by World Bank.
The top three IDA borrowers that are ahead of Nigeria are India on first place, Bangladesh and Pakistan at third. But these three countries of Asia are in better place than Nigeria because their economies are more productive especially India with healthy trade balances with its trading partners.
Although the reports stated that: “Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria.” But the major problem remains that Nigeria’s economy is bedeviled with poor productivity, high inflation and high monetary interest rate.
And making matters worse, the government generated revenue is not adequate to service her debts and finance its budget. Nigeria is basically bankrupt, scrap of foreign exchange for business community to operate.
The problem is not going to get better soon because Nigeria needs to borrow more to pay her bills and finance her budget. Nigeria sooner or later will move higher in list of global debt ridden nations.