Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 32)

Between 2015 and 2021, Nigeria’s external debt from the World Bank and the African Development Bank nearly doubled, increasing from US$7.23 billion to US$14.35 billion. ¹ About US$11.097 billion was obtained from the World Bank’s International Development Association (IDA) which provides concessional loans at lower interest rates and longer maturity and grace periods. Other sources include the World Bank’s International Fund for Agricultural Development (IFAD), with a commitment of US$410.23 million. While debt is an important source of revenue for countries, excessive debt can hinder long run economic growth. More specifically, high debt service payments crowds out investment in critical sectors such as education, health, and social protection. Consequently, debt service management strategies such as debt for development swaps – that is the provision of debt relief in exchange for investments in key development sectors – should be considered by the government. In addition, the underlying revenue shortage problem should be addressed by mobilizing domestic resources through curbing tax evasion and avoidance.

Download Label
March 13, 2018 - 4:00 am
444.28 kB
v.1.7 (stable)