Nigeria has advanced to become the third-largest debtor to the World Bank’s International Development Association (IDA) as of June 30, 2024, marking a significant shift from its previous position as the fourth-largest borrower in 2023.
This development comes amid a $2.2 billion increase in borrowing under President Bola Tinubu’s administration, pushing Nigeria’s total debt exposure to the IDA from $14.3 billion in 2023 to $16.5 billion in FY2024—a 14.4% rise.
The surge in borrowing reflects Nigeria’s ongoing efforts to tackle economic challenges through infrastructure development, poverty alleviation, and social investment programs. However, it also raises concerns about the sustainability of the nation’s growing debt burden.
Since taking office in May 2023, the Tinubu administration has actively sought international funding to support its ambitious economic and social reforms. During the fiscal year 2024 (July 2023 to June 2024), Nigeria received at least $2.2 billion from the World Bank, underscoring the country’s increasing reliance on international financial aid amid domestic economic difficulties. This debt specifically pertains to the IDA and excludes any loans from the World Bank’s International Bank for Reconstruction and Development (IBRD).
In comparison to other major IDA borrowers, Bangladesh remains the largest, with its debt rising from $19.3 billion in 2023 to $20.5 billion in 2024. Pakistan follows with a stable debt of $17.9 billion, while India, previously third, saw its debt decrease to $15.9 billion, allowing Nigeria to move ahead. Other notable IDA borrowers include Ethiopia, Kenya, and Vietnam, with debts ranging between $12.0 billion and $12.2 billion. These countries, along with Tanzania, Ghana, and Uganda, constitute the top ten IDA debtors, collectively accounting for 63% of the IDA’s total exposure as of June 30, 2024.
The IDA is a critical arm of the World Bank, providing concessional loans and grants to the world’s poorest countries to promote economic growth, reduce inequality, and improve living conditions.
Under President Tinubu’s administration, Nigeria has secured a total of $4.95 billion in World Bank loans, although only about 16% of these funds have been disbursed so far. The World Bank may approve an additional four loan projects for Nigeria this year, potentially totaling $2 billion. According to the Debt Management Office (DMO), Nigeria’s total debt to the World Bank stood at $15.59 billion as of March 31, 2024.