Nigeria is among a list of top 10 countries with high debt risk exposure,the World Bank has said
It disclosed this in the financial statement for International Development Association, which was among the World Bank FY21 audited financial statements .
It said:“IDA faces two types of credit risk: country credit risk and counterparty credit risk.Country credit risk is the risk of loss due to a country not meeting its contractual obligations, and counterparty credit risk is the risk of loss attributable to a counterparty not honoring its contractual obligations.IDA is exposed to commercial as well as noncommercial counterparty credit risk. As of June 30, 2021, the 10 countries with the highest exposures accounted for 66 per cent of IDA’s total exposure.”
The bank rated Nigeria fifth on the list with $11.7bn IDA debt stock, while India led the list with $22bn IDA debt stock, followed by Bangladesh with $18.1bn IDA debt stock, Pakistan with $16.4bn IDA debt stock, and Vietnam with $14.1bn IDA debt stock.
Other countries on the list in order of appearance included Ethiopia with $11.2bn IDA debt stock, Kenya with $10.2bn IDA debt stock, Tanzania with $8.3bn IDA debt stock, Ghana with $5.6bn IDA debt stock, and Uganda with $4.4bn IDA debt stock.
It added that there was a Single Borrower Limit for IDA, which for FY22, had been set at $45bn (25 per cent of $180.9bn of equity as of June 30, 2021).
Nigeria’s undisbursed balance with the World Bank is about $8.656bn as at June 30, 2021.
According to the financial statement for the International Bank for Reconstruction and Development, Nigeria has a total of $589m undisbursed balance, consisting of $500m loans approved but not yet signed and $89m signed loan commitment.
The financial statement for IDA disclosed that Nigeria had a total undisbursed balance of $8.07bn, consisting of $1.462bn loans approved but not yet signed and $6.61bn signed loan commitment.
The financial statement for IBRD disclosed that although certain amount of loans has been agreed ‘the loans are not effective and disbursements do not start until the borrowers and/or guarantors take certain actions and furnish documents’.
A total of $1bn loans were agreed between Nigeria and the World bank’s IBRD, of which Nigeria’s outstanding loan is $411m.
For IDA, a total of $19.54bn loans were agreed upon, of which Nigeria’s outstanding loan is $11.47bn.
Meanwhile,Nigeria generated a N1tn in the first half of the year, consisting of N512.25bn in the second quarter and N495.39bn generated in the first quarter.
According to the sectoral distribution of Value Added Tax’ report released by the National Bureau of Statistics,the sectorial distribution of Value Added Tax data for Q2 2021 reflected that the sum of N512.25bn was generated as VAT in Q2 2021 as against N496.39bn generated in Q1 2021 and N327.2bn generated in Q2 2020 representing 3.20 per cent increase Quarter-on-Quarter and 56.56 per cent increase Year-on-Year.”
The NBS disclosed that out of the total VAT generated, N187.43bn constituted Non-Import VAT locally while N207.69bn was generated as Non-Import VAT for foreign.
The balance of N117.13bn was generated from the Nigerian Customs Service Import VAT.
The report also noted that by sector, other Manufacturing generated the highest amount of VAT with N44.89bn, followed by Professional Services which generated N29.30bn and Commercial and Trading, N21.96bn.
