The World Bank on Wednesday put Nigeria’s total external debt value at $46.238 billion as at the end of 2018.
In its International Debts Statistics 2020 report, the Bank said a total external debt of low- and middle-income countries climbed 5.3 per cent to $7.8 trillion in 2018.
Sub-Saharan countries excluding South Africa saw debts stocks swell by 8 per cent on average in 2018, and over half the countries in the region have seen external debt stocks double since 2009.
Nigeria’s total external debts, however, comprised of both government and private sector obligations including sovereign and non-sovereign guaranteed debts. It is also a leap from $28,730 billion in 2015.
Nonetheless, the report did not categorise Nigeria as being in the category of heavy debtors as South Africa remained the highest exposed country in terms of external debt in Africa while China was the highest debtor among low and middle-income countries.
It noted that sovereign bond issuance by Sub-Saharan countries continued apace in 2018 to reach a new record high of $17.4 billion (excluding South Africa)— well over double the $9 billion issued in 2017.
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“Major oil exporters, Angola and Nigeria, led the way, issuing $3.5 billion and $5.4 billion, respectively. Cote d’Ivoire, Ghana, Kenya, and Senegal each tapped the markets for around $2 billion.
“Proceeds from these issuances were used for infrastructure financing, balance-of-payments support, and refinancing of prior operations.”
On foreign direct investment, the report explained that a rebound of inflows to South Africa ($1.3 billion) ensured that countries in Sub-Saharan Africa recorded the largest rise in FDI inflows in 2018, up 17 per cent from the prior year to $24 billion and a slowing of repatriation of earnings in Angola with concomitant reduction in outflows to $5.9 billion ($7.3 billion in 2017).
“Heightened risk perceptions reduced inflows to Nigeria by 43 per cent, to $2 billion.
“Inflows to Ghana fell 8 per cent, to $3 billion, but those to the oil and gas sector remained strong.
“In Kenya inflows rose from negligible levels to a record $1.6 billion across diverse industries, in response to measures to facilitate private investment and improve Doing Business rankings.
“In Uganda, FDI inflows were up 79 per cent, to $1.3 billion, mostly in the oil and gas sector.
“Inflows to Ethiopia, the largest FDI recipient in East Africa, were resilient, despite an 18 per cent fall to $3.3 billion.”
Also, attractive valuations encouraged bargain hunting by global portfolio investors resulted in moderate inflows to Nigeria and South Africa.
“To grow faster, many developing countries need more investment that meets their development goals,” World Bank Group President David Malpass said.
“Debt transparency should extend to all forms of government commitments, both explicit and implicit. Transparency is a critical part of attracting more investment and building an efficient allocation of capital, and these are essential in our work to improve development outcomes.”