Nigeria has emerged as the third-largest debtor to the World Bank’s International Development Association (IDA), following a substantial increase in its borrowing from the institution.
According to the World Bank’s latest financial statements, Nigeria’s exposure to the IDA surged by 14.4%, rising from $14.3 billion in the fiscal year (FY) 2023 to $16.5 billion in FY2024.
This $2.2 billion increase marks a significant shift, moving Nigeria from its previous position as the fourth-largest borrower to now being among the top three IDA debtors for the first time.
The fiscal year 2024, which spans from July 2023 to June 2024, has seen Nigeria receiving at least $2.2 billion from the World Bank under the administration of President Bola Tinubu. This debt, however, is distinct from any outstanding loans Nigeria has with the World Bank’s International Bank for Reconstruction and Development (IBRD).
Bangladesh continues to hold the top spot as the largest IDA debtor, with its exposure increasing from $19.3 billion in 2023 to $20.5 billion in 2024. Pakistan remains the second-largest borrower with a steady exposure of $17.9 billion.
Meanwhile, India, which was previously the third-largest IDA debtor in 2023 with $17.9 billion, saw a reduction in its exposure to $15.9 billion in 2024, allowing Nigeria to overtake it.
Other significant IDA debtors include Ethiopia, which saw its exposure grow from $11.6 billion in 2023 to $12.2 billion in 2024. Kenya and Vietnam both have exposures of $12.0 billion as of 2024.
Additionally, Tanzania, Ghana, and Uganda round out the top ten IDA debtors. Collectively, these ten countries account for 63% of the IDA’s total exposure as of June 30, 2024.
The rise in Nigeria’s IDA borrowing highlights the growing financial reliance of the country on international development financing amid ongoing economic challenges.
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