DMO Reacts to Media Publication on the Listing of Nigeria, Nine Others as High-Debt Risk Nations


Thursday, August 12, 2021 /6:30 PM/ By DMO Nigeria / Header Image Credit: DMO


The attention of the Debt Management Office (DMO) has been drawn to the publication on Page 19 of The Punch Newspaper of Wednesday, August 11, 2021, captioned "World Bank lists Nigeria, nine others high-debt risk nations".


In the publication of The Punch Newspaper, it was stated that the World Bank has classified Nigeria as one of the top ten (10) 'high-debt risk nations' in the Intemational Development Association (IDA) Audited Financial Statement for the Fiscal Year 2021 (July 1, 2020 - June 30, 2021) published on Monday, August 9, 2021.


The publication of The Punch Newspaper is not only false and misleading but also suggests an inadequate understanding of the essence of the World Bank's Report. The World Bank's Report was an assessment of the performance of IDA and not the performance of the IDA Loans nor the debt repayment Capacity of the beneficiaries of IDA Loans. By way of explanation, the World Bank through IDA, gives concessional loans to poor and developing countries to help them achieve improvements in growth, job creation, poverty reduction, governance, the environment, climate adaptation and resilience, human Capital, infrastructure, and debt transparency. Nigeriais a beneficiary of IDA Loans.

Proshare Nigeria Pvt. Ltd.


It is important to re-emphasize that the World Bank's Report, which was misrepresented by The Punch Newspaper, was focused only on the composition of IDA's Loan Portfolio and did not make any reference to the debt sustainability of the top ten (10) beneficiary countries of IDA Loans, such as India, Pakistan, Nigeria, Kenya and Ghana that the Newspaper erroneously referred to as 'high-debt risk nations.


IDA Loans are typically for Tenors of 30 - 40 years, Grace Period (moratorium on principal repayment) of 7 - 10 years and Service Fee of only 0.75%. The highly concessional nature of IDA Loans satisfies the requirements of the provision of Section 41(1)(a) of the Fiscal Responsibility Act, 2007, which states that Government at all tiers shall only borrow on concessional terms with low interest rate and with a reasonably long amortization period. The cost of IDA Loans, which is the Service Fee of 0.75%, is considerable low thereby moderating the cost of debt service.


The DMO wishes to state that Nigeria's IDA's Debt Stock as at June 30, 2021 was USD11.7 billion. IDA Loans represent one of the most favourable borrowing options for countries like Nigeria and is also consistent with the Medium Term Debt Management Strategy of the Federal Government.

Proshare Nigeria Pvt. Ltd.


Related News on Debts

1.    Nigeria on the Debt Precipice: Spent N1.8trn on Debt Servicing in First Five Months of 2021

2.    Q1 2021 Debt Data: Domestic Debt Service on a Plateau

3.    Q1 2021 Total Debt Figure: Moderate Risk of Distress Despite Rising Debt Level

4.    37.67% of Nigeria's Total Public Debt Was External as of Q1 2021 - NBS

5.    Two-thirds of the FGN's External Debt Concessionary

6.    Q1 2021 Total Debt Figure: Moderate Risk of Distress Despite Rising Debt Level

7.    Public and FGN Domestic Debt Ratios under Control

8.    Nigeria's Total Public Debt Stood at N33.11trn as of March 31, 2021 - DMO

9.    Modest Burden of External Debt Service in Q4 2020

10. A Rise in Domestic Debt Service in Q4 2020

11. 38.60% of Nigeria's Total Public Debt Was External in Q4 2020 - NBS

12. Q4 2020 External Debt Data: World Bank Heads the FGN's External Creditor List

13. A Modest Increase in FGN Domestic Debt in Q4 2020

14. Nigeria's Total Public Debt Stood at N32.92trn as of December 31, 2020 - DMO

15. FGN's Domestic Debt Service on a Plateau, Totalled N604bn in Q3 2020

16. A Small Rise in the FGN's Domestic Debt in Q3 2020

17. Nigeria's Public Debt Stock as of September 30, 2020 Stood at N32.22trn

18. External Debt Service Under Control 

19. New Issuance, New Debt Service 

20. External Debt Almost Two-thirds Concessionary 

21. Nigeria's Total Public Debt Stood At N31.01trn in Q2 2020 - NBS 

22. Nigeria's Public Debt Stock Stood At N31.01trn As of June 2020 

23. External Debt Stock Flat in Q1 2020 

24. Q1 2020: Debt Service Settled on a Plateau 

25. Nigeria's Total Public Debt Stood At N28.63trn in Q1 2020 - NBS 

26. Nigeria's Total Public Debt Stood At N27.40trn in Q4 2019 - NBS 

27. Nigeria's Rising Debt Burden and How to Boost Revenue 

28. Nigeria's Total Public Debt Stood At N26.14trn in Q3 2019 - NBS 

29. Nigeria's Total Public Debt Stood At N25.70trn in Q2 2019 - NBS 

30. Nigeria's Total Public Debt Stood At N24.97trn in Q1 2019 - NBS 

31. DMO Releases Q1 2019 Public Debt Data - Marginal Increase of 2.3% in Total Public Debt Recorded 

32. DMO Releases Public Debt Data for December 2018 

33. Nigeria's Total Public Debt Stock Stood At $73.21bn or N22.43trn in Q3 2018 

34. DMO Releases Public Debt Data for June 2018; FGN Domestic Debt Declines 

35. Public Debt Vulnerable to Exchange Rate Movements 

36. DMO Publishes Q1 2018 Debt Data; Total Public Debt Stood At N22.71trn or US$74.28bn 

37.  Total Public Debt as at December 31, 2017 Represents 18.20% of Nigeria's GDP for 2017 - DMO

Proshare Nigeria Pvt. Ltd.
Proshare Nigeria Pvt. Ltd.
Related News