Nigeria’s Debt Burden Swells: Becomes Third-Largest Debtor to World Bank’s IDA

By Samaila Emmanuel

Nigeria has emerged as the third-largest debtor to the World Bank’s International Development Association (IDA), with a significant increase in borrowing from the institution. According to the World Bank’s financial statements, Nigeria’s IDA exposure rose by 14.4% from $14.3 billion in the 2023 fiscal year to $16.5 billion in the 2024 fiscal year, which ended on June 30.

This $2.2 billion increase marks a notable shift for Nigeria, which was previously the fourth-largest borrower in 2023. The debt was incurred under the administration of President Bola Tinubu, who took office in May 2023.

Nigeria now trails only Bangladesh, the largest IDA debtor with an exposure of $20.5 billion

Nigeria now trails only Bangladesh, the largest IDA debtor with an exposure of $20.5 billion, and Pakistan, which maintains its second position with an exposure of $17.9 billion. India, previously the third-largest borrower, saw a decrease in its IDA exposure to $15.9 billion, allowing Nigeria to surpass it.

Other significant IDA borrowers include Ethiopia, Kenya, Vietnam, Tanzania, Ghana, and Uganda, which collectively account for 63% of the IDA’s total exposure as of June 30, 2024.