In its latest International Debt Report, the World Bank revealed that Nigeria and other developing countries disbursed a staggering $443.5 billion in 2022 to service external and publicly-guaranteed debts. This marks a 5% increase from the previous year, encompassing both principal and interest payments.
The report highlights that 75 countries, eligible to borrow from the World Bank’s International Development Association (IDA) which supports the poorest nations, collectively paid a colossal $88.9 billion for debt-servicing in 2022. Notably, the report unveiled that interest payments by these countries surged to a record high of $23.6 billion from 2012 to 2022.
Furthermore, the report projects that the overall debt-servicing expenditures for the 24 poorest countries are anticipated to swell by up to 39% in 2023 and 2024.
This revelation underscores the significant financial burden faced by developing nations, including Nigeria, and accentuates the pressing need for effective debt management strategies to alleviate the strain on their economies.
