Nigeria Ranks Third in World Bank IDA Debt.
Nigeria has recently become the third-largest debtor to the World Bank’s International Development Association (IDA), with its debt reaching $16.5 billion as of June 30, 2024. This represents a significant increase from the $14.3 billion recorded at the end of the previous fiscal year, marking a 14.4% rise in Nigeria’s borrowing from the IDA. Under President Bola Tinubu’s administration, Nigeria secured an additional $2.2 billion in loans from the IDA, contributing to this escalation in debt.
This development places Nigeria behind Bangladesh, which holds the largest IDA debt at $20.5 billion, and Pakistan at $17.5 billion, but ahead of India, which saw its IDA exposure decrease to $15.9 billion, thus allowing Nigeria to overtake it in the rankings. The top ten IDA debtors, including Nigeria, account for 63% of the IDA’s total exposure, highlighting the concentration of the World Bank’s concessional lending to these countries.
The increase in Nigeria’s debt to the IDA has sparked discussions on the sustainability of the country’s debt profile, especially with significant portions of its international payments going towards debt servicing. This situation underscores concerns about the economic implications of such high borrowing levels, particularly in terms of future debt servicing costs and the potential impact on infrastructure investment and economic development.
