As of September 30, 2024, Nigeria has maintained its position as the third-largest debtor to the World Bank’s International Development Association, with its debt reaching $17.1 billion.
Within three months, Nigeria’s debt to the IDA grew by $600 million from the previous $16.5 billion recorded in June 2024, as per the World Bank’s financial statements for the fiscal year up to September 2024.
During the fiscal year that ended in June 2024, Nigeria obtained an additional $2.2 billion in loans, propelling it to the third spot among IDA borrowers, up from fourth place in 2023.
Nigeria has sustained its position as the third-largest debtor, receiving a total of $2.8 billion in loans from the World Bank’s IDA during a specific administration.
The first and second positions are held by Bangladesh and Pakistan, with debt exposures of $21 billion and $18.5 billion, respectively.
India is in fourth place with a debt of $15.9 billion, followed by Ethiopia at $13.1 billion. Other notable borrowers include Kenya, Tanzania, and Vietnam.
Countries at the lower end of the list, such as Ghana and Uganda, owe $7 billion and $5 billion, respectively, collectively representing 63% of IDA’s total exposure.
The IDA’s Single Borrower Limit for FY2025 is set at $47.5 billion, accounting for 25% of its equity as of June 30, 2024.
Nigeria’s debt remains manageable within the SBL threshold, as per the World Bank’s assessment, despite its significant amount.
The concessional loans from the IDA play a crucial role in Nigeria’s funding strategy, providing low-interest rates and extended repayment terms, distinct from loans obtained from the International Bank for Reconstruction and Development.
Data from the Central Bank of Nigeria indicates a notable increase in foreign debt servicing by the Federal Government, reflecting the mounting fiscal pressures amid economic challenges.