Under Buhari’s watch, World Bank lists Nigeria among nations with high debt risk

Under the watch of President Muhammadu Buhari, the World Bank has listed Nigeria among the ten countries with high debt risk exposure.

Nigeria ranked number five with $11.7 billion debt stock according to a financial statement the World Bank released on behalf of the International Development Association (IDA).

“As of June 30, 2021, the ten countries with the highest exposures accounted for 66% of IDA’s total exposure,” World Bank said.

India ranked first on the list with $22 billion debt stock, Bangladesh second with $18.1 billion, Pakistan fourth with $16.4 billion debt stock, followed by Vietnam’s $14.1 billion debt stock. 

“IDA’s largest exposure to a single borrowing country, India, was $22 billion as of June 30, 2021. Monitoring these exposures relative to the SBL, requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees.” 

Other countries on the list in Africa include Ethiopia, Kenya, Tanzania, Ghana and Uganda. 

The World Bank explained that “Country credit risk is the risk of loss due to a country not meeting its contractual obligations, and counterparty credit risk is the risk of loss attributable to a counterparty not honoring its contractual obligations. IDA is exposed to commercial as well as noncommercial counterparty credit risk.”

Nigeria’s local and foreign debt profile has skyrocketed since Mr Buhari’s regime assumed office in 2015. 

In June, the National Bureau of Statistics reported that federal and state governments were owing N33.11 trillion in public debts, as of March 31. 

The NBS, which stated this in its ‘Nigerian domestic and foreign debt for Quarter one, 2021 (Q1 2021)’, added that upon disaggregation, the nation’s total public debt indicated that N12.47 trillion or 37.67 per cent of the debt was external, while N20.64 trillion or 62.33 per cent of the debt was domestic. 

Peoples Gazette published an audio interview recorded before the 2019 presidential election, in which Buhari’s minister of Transport, Rotimi Amaechi said the president was adamant about taking loans and had vowed to go to jail on his behalf. 

“And I like the president’s disposition. He says, ‘let’s borrow it. They can say whatever they like. When we finish, once we are borrowing to the infrastructure, and we finish developing, Amaechi, don’t worry. I’ll go to jail on your behalf. You won’t go to jail,” Mr Amaechi disclosed.

Though Mr Buhari has claimed to be piling debt for Nigeria to fix infrastructure, his decision has been widely condemned by experts who argue that Mr Buhari’s regime is mortgaging Nigeria’s future with his debt spree.