World Bank tasks Nigeria, others on debt transparency as external financing reach $429bn

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Factual Pursuit of Truth for Progress

Grace Cofie

The World Bank has demanded debt transparency in countries’ development process. It has estimated that external financing in Nigeria and other low income developing countries (LIDCs) will reach $429bn between 2023 and 2025.

It also added that this transparency would facilitate new investments, improve accountability, and also help reduce corruption.

The statement was read in a report titled “Transparency in Developing Economies,” on Wednesday, which marked the first comprehensive assessment of the global and national systems for monitoring sovereign debt.

The report added that countries who needs this financing include Kenya, Honduras, Rwanda, Kosovo, Gambia, Chad, Nepal, Nigeria, Bhutan, Maldives, South Africa, Vietnam, Jamaica, Indonesia, Peru, Lao PDR, among others.

It added, “To meet the Sustainable Development Goals (SDGs) by 2030, low income developing countries will need to invest at least 4.5 per cent of national GDP each year on infrastructure alone.

“With a growing current account and budget deficits following the global economic slowdown, initial World Bank estimates indicate that external financing needs in LIDCs will reach $429bn between 2023 and 2025. Most of these financing needs will have to be met through new borrowing. To ensure that this financing contributes effectively to development outcomes and does not undermine long-term debt sustainability, debt transparency must be improved.”

The report added that requirements about standardization of terms may help promote transparency.

The World Bank President, David Malpass, on his part, said, “Improving debt transparency requires a sound public debt-management legal framework, integrated debt recording and management systems, and improvements in the global debt monitoring. International financing institutions, debtors, creditors, and other stakeholders, such as credit-rating agencies and civil society, all have a key role to play in fostering debt transparency.”

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