Deborah Hundenu
The World Bank Group, in its recent data, has disclosed that former Presidents Olusegun Obasanjo, the late Umaru Musa Yar’Adua, and Goodluck Jonathan left a sum of $10.6 billion in loans.
Obasanjo governed between 1999 and 2007, Yar’Adua between 2007 and 2010, until his death, after which Dr. Goodluck Jonathan took over and governed between 2010 and 2015.
PLATFORM TIMES gathered that the leaders who governed the country between 1999 and 2015 left this huge debt for the nation.
This revelation comes amid growing concerns over Nigeria’s ballooning national debt, which stood at N121.67 trillion ($91.46 billion) as of March 2024, according to the Debt Management Office (DMO).
The domestic debt was recorded at N65.65 trillion ($46.29 billion), while the external debt stood at N56.02 trillion ($42.12 billion).
The World Bank Group Finance, a digital platform that provides public financial data and portfolio information, revealed that the Federal Government is still repaying at least 69 different loans obtained between 2000 and 2014.
PLATFORM TIMES reports that these loans, secured through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—both arms of the World Bank—continue to strain Nigeria’s financial resources.
The loans include funding for various projects, some of which date back more than two decades. For instance, in 2000, the government secured $60 million for the Community-Based Poverty Reduction Project, $55 million for the Second Primary Education Project, $20 million for the Economic Management Capacity Building Project, and $5 million for the Small Town Water Supply and Sanitation Programme Pilot Project.
It was also gathered that these loans, despite their age, remain a financial obligation for the current administration.
Further loans obtained between 2001 and 2005 include significant amounts such as $100 million for the Transmission Development Project, $114 million for the Privatisation Support Project, and $90.3 million for the HIV/AIDS Programme Development.
These, along with others, contribute to the mounting debt Nigeria continues to service.
Between 2006 and 2014, the Federal Government secured additional loans totaling $8.3 billion. Projects funded during this period include the Lagos Metropolitan Development and Governance Project ($200 million), the Avian Influenza Control and Human Pandemic Preparedness and Response Project ($50 million), and the Malaria Control Booster Project ($180 million).
PLATFORM TIMES further gathered that the loans, while intended to address critical developmental and health challenges, have added to the heavy debt load the nation now bears.
The World Bank’s platform highlighted that these loans fall under categories that do not include Trust Funds, Financial Intermediary Funds (FIFs) Commitments, loans to the International Finance Corporation (IFC), nor IBRD/IDA guarantees.
The revelation of these outstanding debts raises questions about the long-term sustainability of Nigeria’s borrowing practices, especially given the significant amounts that have been allocated to debt servicing. Between 2019 and 2024, the Central Bank of Nigeria reported that $15.55 billion was spent on debt servicing, a figure that reflects the ongoing financial pressure on the nation.
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