Nigeria, others, tops IFC’s debtors list

Nigeria, the giant of Africa, ranked among the top 10 debtors on the list of the International Finance Corporation in fiscal year 2023.

IFC disclosed this in its full-year financial report for 2023.

Nigeria appeared in the segment of the financial report titled ‘IFC’s largest country exposure’ with about $2.02 billion, ranking number nine among 10 countries which include South Africa, India and Brazil.

According to the report, IFC’s total exposure to the countries in the review financial year stood at about $34.94 billion.

A breakdown of lending to the high-level borrowing countries showed that South Africa secured about $3.23 billion, ranking fifth on the chart while India led the pack with about $7.28 billion followed by Brazil, $5.6 billion, Turkey, $4.65 billion and China, $3.23 billion.

Other premium debtor nations on the list are Colombia, $2.35 billion, Vietnam,$2.19 billion, Indonesia,$2.17 billion and Romania, $1.73 billion.

The Debt Management Office disclosed in September that Nigeria’s total public debt hit N87.38 trillion at the end of the second quarter of 2023.

The figure represents an increase of 75.29 per cent or N37.53 trillion compared to N49.85 trillion recorded at the end of March 2023.

The DMO said the debt includes the N22.71 trillion Ways and Means Advances of the Central Bank of Nigeria to the Federal Government.

The DMO stated, “Nigeria’s total public debt stock as at June 30, 2023, was N87.38 trillion ($113.42 billlion). It comprises the total domestic and external debts of the Federal Government of Nigeria, the thirty-six states, and the Federal Capital Territory.

“The major addition to the Public Debt Stock was the inclusion of the N22.712 trillion securitised FGN’s Ways and Means Advances.”

In the Financial Year (FY) 2023, IFC invested $43.7 billion in long-term and short-term finance, including over $15 billion mobilized from other investors.

By Industry, IFC’s lending to Financial Markets stood at $8.60 billion representing 51.58 per cent of total lending in the review period while Infrastructure gulped about $2.45 billion or 14.67 per cent and Manufacturing, $1.52 billion or 9.11 per cent.

The other sectors that enjoyed the facilities of the Fund in 2023 were Agribusiness & Forestry, $1.1 billion representing 6.60 per cent, Funds, $990 million or 5.94 per cent, Tourism, Retail & Property, $765 million or 4.59 per cent, Telecommunications & Information Technology, $747 million representing 4.48 per cent, Health & Education, $505 million or 3.03 per cent and Natural Resources, $2 million or 0.01 per cent.

Meanwhile, former President Olusegun Obasanjo says Nigeria and other African countries may find it difficult to secure debt relief considering their large debt profiles.

Obasanjo also indicated that the debt relief secured by Nigeria from the Paris Club during his tenure was allegedly mismanaged by successive administrations, a situation that has plunged the country into huge and undeserved debt.

As a result, he noted that it might be impossible for the next generations of Africans to enjoy debt relief again considering the mismanagement on the continent.

In 2003, Obasanjo secured a debt relief for Nigeria. In October 2005, Nigeria and the Paris Club announced a final agreement for debt relief worth $18 billion and an overall reduction of Nigeria’s debt stock by $30 billion. The deal was completed on April 21, 2006, when Nigeria made its final payment, and its books were cleared of any Paris Club debt.