As of June 30, 2024, Nigeria has become the third-largest debtor to the World Bank’s International Development Association (IDA), marking a significant increase in the country’s borrowing from the institution. This shift reflects a substantial change in Nigeria’s financial landscape under President Bola Tinubu’s administration.
According to the World Bank’s latest financial statements, Nigeria’s exposure to the IDA has surged by 14.4%, increasing from $14.3 billion in the fiscal year (FY) 2023 to $16.5 billion in FY 2024. This $2.2 billion rise in borrowing has propelled Nigeria into the top three IDA debtors for the first time, moving up from its previous position as the fourth-largest borrower in 2023.
The fiscal year 2024 spans from July 2023 to June 2024, during which Nigeria received at least $2.2 billion from the World Bank. This timeframe aligns with President Tinubu’s administration, highlighting the country’s growing reliance on international financial support amid domestic economic challenges.
It is important to note that this debt pertains specifically to the IDA and is separate from any outstanding loans Nigeria has with the World Bank’s International Bank for Reconstruction and Development (IBRD).
In comparison to other top IDA debtors, Bangladesh remains the largest borrower, with its exposure increasing from $19.3 billion in 2023 to $20.5 billion in 2024. Pakistan follows in second place, maintaining a stable exposure of $17.9 billion during the same period. Meanwhile, India, which was previously the third-largest borrower with $17.9 billion in 2023, saw its IDA exposure decrease to $15.9 billion in 2024, allowing Nigeria to surpass it.
Other notable IDA borrowers include Ethiopia, whose exposure grew from $11.6 billion in 2023 to $12.2 billion in 2024. Kenya and Vietnam both hold exposures of $12.0 billion. Alongside Tanzania, Ghana, and Uganda, these countries round out the top ten IDA debtors, collectively accounting for 63% of the IDA’s total exposure as of June 30, 2024.
The IDA, a crucial part of the World Bank, focuses on providing concessional loans and grants to the world’s poorest countries. These loans feature low interest rates and extended repayment periods, aiming to foster economic growth, reduce inequalities, and improve living conditions in developing regions.
According to reports, Nigeria secured a total of $4.95 billion in loans from the World Bank under Tinubu’s administration, amid rising concerns about the country’s escalating external debt servicing costs. However, only about 16% of these new loans have been disbursed so far. The World Bank may also approve an additional four loan projects for Nigeria this year, potentially totaling $2 billion.
Furthermore, data from the external debt stock report of the Debt Management Office (DMO) indicates that Nigeria’s total debt to the World Bank stood at $15.59 billion as of March 31, 2024.
