Nigeria is ranked 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 countries were listed in the financial statement for International Development Association (IDA), a part of World Bank FY21 audited financial statements.
World Bank Group President, David Malpass, said the support to client countries surged to $157bn over the last 15 months to address increased poverty, inequality, and the impacts of COVID-19.
Malpass noted that the unprecedented level of commitments helped countries strengthen health systems, protect the poor and vulnerable, support jobs and businesses, promote economic growth, and lay the foundation for green, resilient and inclusive recovery.
“IDA faces two types of credit risk: country credit risk and counterparty credit risk,” the financial statement read.
It 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,” the report said.
It added that there was a Single Borrower Limit for IDA, which for FY22, had been set at $45bn (25 per cent of $180.9bn of equity as of June 30, 2021).
The report said it was discovered that Nigeria’s undisbursed balance with the World Bank is about $8.656bn as at June 30, 2021.
Nigeria currently has a total of $589m undisbursed balance, consisting of $500m loans approved but not yet signed and $89m signed loan commitment, according to the financial statement for the International Bank for Reconstruction and Development.
The financial statement for IDA disclosed that Nigeria had a total undisbursed balance of $8.07bn, consisting of $1.462bn loans approved but not yet signed and $6.61bn signed loan commitment.
The financial statement for IBRD disclosed that although certain amount of loans has been agreed “the loans are not effective and disbursements do not start until the borrowers and/or guarantors take certain actions and furnish documents”.
A total of $1bn loans were agreed between Nigeria and the World bank’s IBRD, of which Nigeria’s outstanding loan is $411m.
For IDA, a total of $19.54bn loans were agreed upon, of which Nigeria’s outstanding loan is $11.47bn.
Nigeria’s Debt Management Office (DMO) in March 2021 said the country owes the World Bank a total of $11.51bn which consists of $11.10bn IDA loans and $410.23m IBRD loans.