Nigeria has become the third-largest debtor to the World Bank’s International Development Association (IDA) as of June 30, 2024, moving up from its previous position as the fourth-largest borrower. This shift is marked by a $2.2 billion increase in Nigeria’s IDA debt, reflecting significant changes in the country’s financial landscape under President Bola Tinubu’s administration.
This debt pertains exclusively to the IDA and does not include loans from the World Bank’s International Bank for Reconstruction and Development (IBRD). In the global context, Bangladesh remains the largest IDA debtor with $20.5 billion, followed by Pakistan with $17.9 billion. Nigeria’s rise to the third position comes as India’s IDA debt decreased from $17.9 billion in 2023 to $15.9 billion in 2024, allowing Nigeria to overtake it.
Other significant IDA debtors include Ethiopia, with $12.2 billion, and Kenya and Vietnam, each with $12.0 billion. These countries, along with Tanzania, Ghana, and Uganda, make up the top ten IDA debtors, collectively accounting for 63% of the IDA’s total exposure as of mid-2024.
The IDA, a key arm of the World Bank, provides low-interest loans and grants to the world’s poorest countries to support economic growth, reduce inequalities, and improve living conditions.
Amid concerns about Nigeria’s increasing external debt, reports indicate that the country secured $4.95 billion in loans from the World Bank during President Tinubu’s administration, with only about 16% of these funds disbursed so far. The World Bank is also expected to consider an additional $2 billion in loans for Nigeria through four new projects this year. According to Nigeria’s Debt Management Office, the country’s total debt to the World Bank was $15.59 billion as of March 31, 2024.
