Nigeria Becomes Third-Largest Debtor to World Bank’s IDA with $16.5 Billion Borrowing

Nigeria has ascended to the position of the third-largest debtor to the World Bank’s International Development Association (IDA), marking a significant surge in borrowing from the institution.

The World Bank’s financial statements reveal that Nigeria’s exposure to the IDA increased by 14.4%, rising from $14.3 billion in the fiscal year (FY) 2023 to $16.5 billion in FY 2024. This $2.2 billion growth propels Nigeria into the top three IDA debtors for the first time, a notable leap from its previous rank as the fourth-largest borrower in 2023.

The fiscal year 2024 spans from July 2023 to June 2024, indicating that Nigeria has secured at least $2.2 billion in loans from the World Bank during President Bola Tinubu’s administration. It is important to note that this debt is separate from any existing loans Nigeria may have with the World Bank’s International Bank for Reconstruction and Development (IBRD).

Bangladesh remains the largest IDA debtor, with its exposure rising from $19.3 billion in 2023 to $20.5 billion in 2024. Pakistan follows closely, maintaining its second-place position with a steady exposure of $17.9 billion during the same period.

India, which held the third-largest borrowing position in 2023 with $17.9 billion, experienced a reduction in its IDA exposure to $15.9 billion in 2024, allowing Nigeria to overtake it.

Other significant IDA borrowers include Ethiopia, with its exposure growing from $11.6 billion in 2023 to $12.2 billion in 2024, as well as Kenya and Vietnam, each with $12.0 billion in 2024. Together with Tanzania, Ghana, and Uganda, these countries form the top ten IDA debtors, collectively accounting for 63% of the IDA’s total exposure as of June 30, 2024.

Nigeria’s new standing as the third-largest debtor highlights the country’s increasing reliance on international financial support from the World Bank.