In only 16 months, the Federal Government, led by President Bola Tinubu, obtained loans from the World Bank totalling $6.45 billion.
The recent approval of three new loans totaling $1.57 billion from the World Bank for various projects in Nigeria caused the sum to grow to its current amount, and analysts project it will rise further in the coming months.
This came as the international lender accepted no less than 36 loan requests to the Federal Government, totalling $24.088 billion in five years.
These licenses target funding for numerous development projects around the country and come at a time when the government’s debt profile is expanding.
This situation raises concerns about the sustainability of these financial obligations and their potential long-term economic implications.
Some of Tinubu’s programs include loans for electricity ($750 million), women empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), economic stabilisation reforms ($1.5 billion), and resource mobilisation reforms ($750 million).
For many Nigerians, many years of infrastructural collapse and growing unemployment have fuelled their animosity when they hear the government’s decision to borrow.
Although some recognize that resources are limited due to the large population, they believe previous borrowings were unjustified.
However, a review of records received from the international lender’s website on Tuesday revealed that the company has maintained a yearly credit approval for the country since 2020.
CREDIT: Allneeds, PUNCH
RELATED POSTS: