Nigeria is rapidly becoming the next flashpoint in the Africa debt crisis amid a dramatic increase in borrowing that threatens to submerge the economy.
The Debt Management Office (DMO) warned that bilateral and multilateral debts stood at $31.98 billion as of September 2020. Furthermore, a sizable portion of that debts is owed to bilateral and multilateral institutions and includes commercial loans from Eurobonds and Diaspora Bond.
A breakdown of DMO figures shows that more than half of the $ 31.98 billion debt is owed to multilateral institutions, including the IMF, World Bank and AfDB. The country is also indebted to four international lenders, including the Arab Bank for Economic Development in Africa (BADEA); Islamic Development Bank (IDB); International Fund for Agricultural Development (IFAD) and European Development Fund (EDF).
Of the $ 31.98 billion in outstanding debt, $10.74 billion belongs to the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) which are affiliated with the World Bank.
The outstanding debt also shows that Nigeria owes the IMF $3.45 billion which was provided in emergency financial assistance under the Rapid Financing Instrument (RFI) to support the federal government’s efforts to deal with the severe economic consequences of COVID-19 last year.
Nigeria also owes $2.24 billion to Africa Growing Together Fund and African Development Fund, while $4.07 million is owed to five countries (China, France, Japan, India and Germany).
A total of $3.26 million is owed to the Export Import (Exim) Bank of China; Agence Francaise Development ($502.38 million); Japan International Cooperation Agency ($78.20 million); Exim Bank of India ($37 million) and Kreditanstalt Fur Wiederaufbua ($193.26 million), even as Nigeria holds $10.86 billion in Eurobonds and $300 million in Diaspora bond.