As of June 30, 2024, under President Bola Tinubu’s administration, Nigeria has become the third-largest debtor to the World Bank’s International Development Association (IDA), marking a notable rise in the country’s borrowing from the institution.
World Bank financial statements reveal that Nigeria’s debt exposure to the IDA increased by 14.4%, growing from $14.3 billion in the fiscal year (FY) 2023 to $16.5 billion in FY2024. This $2.2 billion increase has elevated Nigeria to the position of the third-largest IDA debtor, up from fourth place in 2023.
The fiscal year for 2024 spans from July 2023 to June 2024, indicating that Nigeria has borrowed at least $2.2 billion from the World Bank during President Tinubu’s term. This debt is separate from any loans received from the World Bank’s International Bank for Reconstruction and Development (IBRD).
Other Major Debtors:
- Bangladesh remains the largest IDA debtor, with its debt increasing from $19.3 billion in 2023 to $20.5 billion in 2024.
- Pakistan holds the second spot, with its debt steady at $17.9 billion over the same period.
- India, previously the third-largest borrower with $17.9 billion in 2023, saw its IDA exposure decrease to $15.9 billion in 2024, allowing Nigeria to surpass it.
Other significant IDA borrowers include:
- Ethiopia, with an increase from $11.6 billion in 2023 to $12.2 billion in 2024.
- Kenya and Vietnam, both with $12.0 billion in 2024.
These countries, along with Tanzania, Ghana, and Uganda, make up the top ten IDA debtors, collectively representing 63% of the IDA’s total exposure as of June 30, 2024.
Additional Information:
The International Development Association (IDA) is a key branch of the World Bank, focusing on providing concessional loans and grants to the world’s poorest nations. These loans, which feature low interest rates and extended repayment terms, aim to drive economic growth, reduce inequalities, and enhance living conditions in developing countries. However, in Nigeria, concerns have been raised that these loans may be used more for government benefits rather than national economic growth.
It was previously reported that Nigeria secured $4.95 billion in World Bank loans under President Tinubu amidst worries about rising external debt servicing costs. Despite this, only about 16% of these new loans have been disbursed.
The Debt Management Office (DMO) reports that as of March 31, 2024, Nigeria owes the World Bank a total of $15.59 billion.