World bank knocks nigeria others for rising debts

The World Bank has expressed concern over the rising debt levels in Nigeria and other countries in the region. According to a report by the World Bank, Nigeria's debt has increased significantly in recent years, with the country's debt-to-GDP ratio rising from 21.4% in 2015 to 34.4% in 2020.

The report, titled "Africa's Pulse: An Update on the State of the Region," also highlighted the debt challenges faced by other countries in the region, including Ghana, Kenya, and South Africa.

The World Bank attributed the rising debt levels in Nigeria and other countries to a combination of factors, including:

  1. Increased borrowing to finance infrastructure projects and budget deficits.
  2. Decline in commodity prices, which has reduced government revenue.
  3. Inflation, which has eroded the purchasing power of citizens and reduced the value of government revenue.
  4. Weak economic growth, which has reduced the ability of governments to service their debt.

The World Bank warned that the rising debt levels in Nigeria and other countries in the region pose significant risks to economic stability and growth. The report noted that high debt levels can lead to:

  1. Reduced creditworthiness, making it more difficult for governments to access international capital markets.
  2. Increased risk of debt distress, which can lead to debt restructuring or even default.
  3. Reduced investment in critical sectors, such as healthcare and education.
  4. Increased burden on taxpayers, who may be required to bear the cost of debt servicing.

The World Bank recommended that governments in the region take steps to address their debt challenges, including:

  1. Implementing fiscal discipline and reducing budget deficits.
  2. Increasing revenue through tax reforms and other measures.
  3. Improving the efficiency of public spending and reducing waste.
  4. Strengthening debt management and transparency.

The report also highlighted the need for international cooperation and support to help countries in the region address their debt challenges. The World Bank called for increased support from international financial institutions, such as the International Monetary Fund (IMF), to help countries in the region implement debt sustainability plans.

In response to the report, the Nigerian government has announced plans to implement measures to reduce its debt levels and improve its debt management. The government has also called for increased support from international partners to help the country address its debt challenges.

Overall, the World Bank's report highlights the need for governments in the region to take a proactive approach to managing their debt levels and ensuring sustainable economic growth.