The Federal Government has contracted external borrowing worth over $10 billion in the last two years, though actual disbursement stands at about $5 billion, representing half of the secured amount.
According to data from the Debt Management Office (DMO), the loans were sourced from multilateral and regional financial institutions as well as the International Capital Market through Eurobonds.
A breakdown of the figures showed that the present administration’s loan journey began on October 4, 2023, with a facility of €103.89 million from Agence France de Développement for the Investment in Digital and Creative Economy (i-DICE). The loan, signed at an interest rate of 3.5 percent with a seven-year moratorium, matures on October 31, 2043. So far, only €3.89 million ($4.21 million) has been disbursed.
Also in the portfolio is a €425.69 million agreement between UniCredit S.p.A., an Italian banking group, and the Federal Government for the supply of six F.A. Aircraft – Tranche A (Defence). The facility, signed at 3.85 percent with a four-year moratorium and maturing on April 17, 2037, remains undisbursed.
The first Chinese loan under the current administration came from the China Development Bank for the Kaduna–Zaria Rail Project. The €883.45 million agreement, signed on December 1, 2023, carries a 4.33 percent interest rate and a five-year moratorium, with a maturity date of April 20, 2040. Disbursement so far stands at €245.19 million ($265.01 million).
On the same day, Nigeria secured a $449 million facility from the World Bank’s International Bank for Reconstruction and Development (IBRD) for Power Sector Recovery Performance-Based Operations. The loan, issued at 6.27 percent with a four-year moratorium, is due on April 1, 2058. Records show only $1.11 million has been disbursed.
Two other loans were signed that December under the World Bank’s International Development Association (IDA). They include XDR 521.30 million for the Adolescent Girls Initiative for Learning and Empowerment (AGILE) AF at 2 percent interest with a six-year moratorium, maturing on August 15, 2053. Disbursement stands at XDR 41.34 million ($54.83 million).
The second, also from IDA, was XDR 371.20 million for the Nigeria for Women Scale-Up Project. With a 2 percent interest rate and a five-year moratorium, it will mature on February 15, 2053.
Similarly, the Islamic Development Bank approved ISD 3.56 million for the i-DICE project at 5.46 percent with a five-year moratorium. The facility, which matures on December 31, 2046, has seen a disbursement of ISD 703,229 ($932,552.16).
