As of June 30, 2024, Nigeria has become the third-largest debtor to the World Bank’s International Development Association (IDA), indicating a significant rise in the country’s borrowing from the institution.
The World Bank’s financial statements reveal that Nigeria’s debt exposure to the IDA grew by 14.4%, from $14.3 billion in the fiscal year (FY) 2023 to $16.5 billion in FY2024. This $2.2 billion increase marks the first time Nigeria has entered the top three IDA debtors, up from its position as the fourth-largest borrower in 2023.
The FY2024 for the World Bank runs from July 2023 to June 2024, and during this period, Nigeria received at least $2.2 billion from the IDA under President Bola Tinubu’s administration. This debt is separate from any loans owed to the World Bank’s International Bank for Reconstruction and Development (IBRD).
Other Top IDA Debtors
Bangladesh remains the largest debtor to the IDA, with its debt exposure rising from $19.3 billion in 2023 to $20.5 billion in 2024. Pakistan is the second-largest debtor, with a stable exposure of $17.9 billion.
India, previously the third-largest borrower with $17.9 billion in 2023, saw its debt to the IDA decrease to $15.9 billion in 2024, allowing Nigeria to move up the ranks. Other significant IDA borrowers include Ethiopia, whose debt rose from $11.6 billion in 2023 to $12.2 billion in 2024, and Kenya and Vietnam, each with $12.0 billion in 2024. Tanzania, Ghana, and Uganda also rank among the top ten debtors, and together, these countries account for 63% of the IDA’s total exposure as of June 30, 2024.
What You Should Know
The International Development Association (IDA) is a branch of the World Bank that provides concessional loans and grants to the world’s poorest countries. These loans, which have low interest rates and extended repayment periods, aim to promote economic growth, reduce inequality, and improve living standards in developing countries.
Nairametrics previously reported that Nigeria secured $4.95 billion in loans from the World Bank under President Tinubu, amid concerns about rising external debt servicing costs. However, Nigeria has received only about 16% of these new loans. Additionally, the World Bank is expected to approve four loan projects totalling $2 billion for Nigeria this year.
According to Nigeria’s Debt Management Office (DMO), as of March 31, 2024, the country owed the World Bank a total of $15.59 billion.
