Nigeria Ranks Low in World Bank Debt Management Report

Must Read



Poor debt management and fiscal policies have seen Nigeria take a back seat in latest World Bank policy and institution assessment rankings.

Nigeria Ranks Low in World Bank Debt Management Report

In a report titled Assessing Africa’s Policies and Institutions released on Wednesday, Nigeria scored 3.2 points, out of 5.0 points.

While the scores are meant to guide countries on policy formulation and monitoring, World Bank’s chief economist Punam Chuhan-Pole said better scores boost a country’s concessional financing from the lender.

The ratings were done on a scale of one to six with the average score standing at 3.2 points. Overall, slightly more than half of the regions beneficiaries of World Bank funds posted a relatively weak performance of below 3.2..

Rwanda was rated the best country with 4.0 points, Senegal was rated the second best country with 3.8 points while Kenya tied with Tanzania and Cape Verde in position three. Uganda came in fourth with 3.6 points with Ethiopia scoring 3.4 points.

Nigeria Ranks Low in World Bank Debt Management Report

Fragile countries had difficulties to face the challenges posed by their environment regarding the high risks of conflict, commodity price shocks, or climate threat. This saw Sudan, South Sudan and Burundi scoring 2.4, 1.5 and 2.9 points respectively.

Currently, Nigeria’s combined domestic and foreign debt stands at $73.21 billion as at June, 2018., Compared to June 2016, the debt has increased by $16.48 billion.

The report also warned of rising public debt relative to gross domestic product (GDP) saying that it could disrupt economic growth and employment creation in African countries that are already experiencing a youth bulge.

Experts said that a regular appraisal on quality and resilience of policy and institutional frameworks in Africa is key to attract development aid and stimulate economic growth..

Related:   Top 20 Most Peaceful (and Most Dangerous) Countries in Africa, 2021
Related:   Haiti President Jovenel Moïse Assassinated

“The CPIA is important for African countries not only because a better score leads to an increase in concessional financing from the World Bank, but also because it is an excellent tool for policy formulation and monitoring,” said Albert Zeufack, the World Bank’s Chief Economist for Africa.

“Our countries should pay more attention to this important tool and use it accordingly,” he added



uzoclinton92@gmail.com'
Uzonna Anele
Anele is a web developer and a Pan-Africanist who believes bad leadership is the only thing keeping Africa from taking its rightful place in the modern world.

Leave a Reply

Subscribe to receive email updates

With a subscription profile, you automatically receive updates without having to return to the website and check for changes

Just In

Lake Retba: Senegal’s Pink Lake

Lake Retba also known as the Pink Lake is famous for its remarkable pinkish-coloured water caused by Dunaliella salina algae and its strong salt content.

More Articles Like This