DMO data shows Tinubu racked up $10b external loans. Total loans now $210b
By Jeph Ajobaju, Chief Copy Editor
Data compiled by the Debt Management Office (DMO) shows President Bola Tinubu has obtained $10 billion external loans for Nigeria in the past two years, with only half the amount disbursed so far.
The loans have varying maturity (interest and principal payment) dates of up to 2058.
Separately, the African Democratic Congress (ADC) has quoted other official data to disclose that the country’s total loan is currently $210 billion.
All of this is apart from the additional $21 billion loan the Senate approved in July for Tinubu to obtain between 2025 and 2026.
Vanguard reports that DMO figures show that the $10 billion external loans were contracted from various multilateral organisations, regional financial institutions, as well as the International Capital Market through Eubonds.
The journey of the Tinubu administration’s external loans started with Agence France De Development Euro 103, 896, 806.66 facility for investment in Digital and Creative Economy (i-DICE) which agreement was signed on 4 October 2023.
That loan was taken for advancing computer technology and has an interest rate of 3.50 percent with a moratorium of seven years. It will mature on 31 October 2043.
A loan maturity date is the date on which the final loan payment is due. In other words, the maturity date is when the loan is expected to be fully paid back.
Only Euro 3. 896 million ($4.211 million) has been disbursed out of the total amount.
UniCredit S.p.A. (formerly UniCredito Italiano S.p.A.), an Italian multinational banking group, and Abuja signed another loan agreement of Euro 425. 698 million for the supply of six F.A. Aircraft –Tranche A (Defence).
The loan has a 3.85 per cent interest rate, a four-year moratorium, and a maturity date of 17 April 2037. It has remained undisbursed.
A loan came from China Development Bank which gave Euro 883.451 million for the Kaduna-Zaria Rail project. The agreement was signed on 1 December 2023 at an interest rate of 4.33 per cent and a moratorium of five years.
It will mature on 20 April 2040. Only Euro 245.198 million ($265. 010 million) of it has been disbursed.
In that same December 2023, the Federal Government signed a $449 million World Bank (International Bank for Reconstruction and Development) loan for Power Sector Recovery Performance-Based Operations (IBRD 1).
The loan was given at a 6.27 per cent interest rate, a moratorium of four years, and maturity on 1 April 2058. Only $1. 112 million has been disbursed, according to DMO data.
On that same day, two other loans were given by the International Development Association (IDA), an arm of the World Bank.
The first was XDR 521. 300 million for Adolescent Girls Initiative for Learning and Empowerment (AGILE) with 2 per cent interest rate, a six-year moratorium, and maturity date of 15 August 2053. Only XDR 41. 345 million ($54. 828 million) has been disbursed.
The second loan from IDA on that day was XDR 371.200 million for Nigeria’s Women Scale-Up Project, which came with 2 per cent interest rate, a five-year moratorium, and maturity on 15 February 2053.
Abuja also entered into an ISD 3.560 million loan agreement with the Islamic Development Bank (IDB) for Investment in digital and Creative project (i-DICE) at an interest rate of 5.46 per cent, a moratorium of five years, and a maturity date of 31 December 2046. Only ISD 703, 229 ($932, 552.16) has disbursed.
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Tinubu secures new $300m World Bank loan for Nigeria, apart from $21b foreign loan in the pipeline
