By Oyinkansayo Wole-Bodunde.
The World Bank has released a financial statement showing that Nigeria owes the International Development Association (IDA) $16.5 billion as of June 30, 2024.
This makes Nigeria the third-largest debtor to the IDA, after Bangladesh and Pakistan.
The IDA provides low-interest loans and grants to poor countries to help them grow economically and improve living standards.
Nigeria’s debt to the IDA increased by $2.2 billion, or 14.4%, from $14.3 billion at the end of 2023. The top ten countries with the highest IDA debt account for 63% of the total debt.
Meanwhile, Nigeria’s total public debt rose to N121.67 trillion in the first quarter of 2024, up from N97 trillion in December 2023.
The Debt Management Office attributed the increase to new domestic borrowing and disbursements from multilateral and bilateral lenders.
Labour leaders have expressed concern about the country’s debt situation, urging vigilance and unity in negotiations to ensure that workers’ benefits are protected.
They emphasized the need for transparency and accountability in managing the country’s debt to avoid making workers poor and the general population.
In a workshop, labour leaders discussed strategies and shared knowledge to achieve better outcomes in negotiations. They stated their commitment to standing firm and not betraying workers’ trust, emphasizing that their actions would define them as heroes or betrayers.
