Nigeria’s debt to the World Bank has increased by $1.07 billion under President Bola Tinubu’s administration. According to an analysis of data from the Debt Management Office (DMO), the country’s debt rose from $14.51 billion at the end of the second quarter of 2023 to $15.59 billion by the end of the first quarter of 2024, marking a 7% increase.

The International Development Association (IDA), a division of the World Bank Group, experienced the most significant rise in lending to Nigeria. IDA loans to Nigeria increased from $14.03 billion in Q2 2023 to $15.10 billion in Q1 2024, an approximate rise of $1.08 billion. Conversely, the International Bank for Reconstruction and Development (IBRD) saw a slight decrease in its loans to Nigeria, dropping from $485.75 million to $484.81 million over the same period.

Despite the increase in borrowing, Nigeria’s debt servicing costs have also been substantial, almost matching the amount borrowed. Over the four quarters from Q2 2023 to Q1 2024, Nigeria spent a total of $1.06 billion on debt servicing for its World Bank loans.

Specifically, Nigeria spent $629.4 million on servicing its debt to the IDA and $432.24 million on debt servicing to the IBRD over the same period. The total debt servicing cost for both IDA and IBRD amounts to $1.06 billion, which is nearly equivalent to the $1.07 billion borrowed in the same timeframe.

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