Nigeria has emerged as the third-largest debtor to the World Bank’s International Development Association (IDA), with a total debt of $16.4 billion as of June 30, 2024. This represents a 14.4% increase from $14.3 billion in 2023. The new borrowings of $2.2 billion have moved Nigeria into the top three IDA debtors for the first time, surpassing India.
The World Bank’s latest financials show that Nigeria’s exposure to the IDA has spiked, with the country’s debt profile hitting $121 trillion. The Debt Management Office (DMO) data reveals that Nigeria’s total debt to the World Bank stood at $15.59 billion as of March 31, 2024.
The IDA is an essential arm of the World Bank, providing concessional loans and grants to vulnerable and poorest countries. Nigeria has received about $4.95 billion in loans from the World Bank under President Bola Tinubu’s administration, with 16% of these loans received so far.
The top 10 IDA debtors account for 63% of the total exposure, with Bangladesh being the largest borrower, followed by Pakistan, Nigeria, India, and Ethiopia. Nigeria’s increasing dependence on international financial support from the World Bank raises concerns about the country’s debt sustainability and economic growth.
In related news, the Central Bank of Nigeria’s (CBN) data shows that the government spent about $2.78 billion on debt-servicing in the first seven months of 2024, representing 64% of the total international payments made during the period. This marks a 39.13% increase from the same period in 2023.
