Nigeria has become the third largest debtor to the World Bank’s International Development Association as of June 30, 2024.
This marks a big increase in Nigeria’s borrowing from the institution, showing a major shift in the country’s financial landscape under President Bola Tinubu’s administration.
According to the World Bank’s latest financial statements, Nigeria’s debt to the IDA has risen by 14.4%, jumping from $14.3 billion in the fiscal year 2023 to $16.5 billion in 2024.
This $2.2 billion increase has pushed 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 runs from July 2023 to June 2024, during which Nigeria received at least $2.2 billion from the World Bank.
This period aligns with President Tinubu’s time in office, highlighting Nigeria’s growing reliance on international financial support due to domestic economic challenges.
This debt relates only to the IDA and does not include any loans Nigeria has with the World Bank’s International Bank for Reconstruction and Development.
In comparison to other major IDA debtors, Bangladesh remains the largest borrower, with its debt increasing from $19.3 billion in 2023 to $20.5 billion in 2024.
Pakistan holds the second position with a steady debt of $17.9 billion during the same period. India, which was previously the third-largest borrower with $17.9 billion in 2023, saw its IDA debt decrease to $15.9 billion in 2024, allowing Nigeria to surpass it.
Other notable borrowers include Ethiopia, whose debt grew from $11.6 billion in 2023 to $12.2 billion in 2024. Kenya and Vietnam both have debts of $12.0 billion. These countries, along with Tanzania, Ghana, and Uganda, round out the top ten IDA debtors, collectively making up 63% of the IDA’s total exposure as of June 30, 2024.
The IDA, a key part of the World Bank, provides low-interest loans and grants to the world’s poorest countries.
These loans are designed to promote economic growth, reduce inequalities, and improve living conditions in developing regions.
Reports indicate that Nigeria secured a total of $4.95 billion in loans from the World Bank under
Tinubu’s administration, amid rising concerns over the country’s growing external debt costs. However, only about 16% of these new loans have been received so far.
The World Bank may approve an additional four loan projects for Nigeria this year, potentially totaling $2 billion.
Furthermore, data from the Debt Management Office shows that Nigeria’s total debt to the World Bank stood at $15.59 billion as of March 31, 2024.
