Nigeria has been identified as the third-largest debtor to the World Bank’s International Development Association (IDA), with a total debt of $17.1 billion as of September 30, 2024, up from $16.5 billion in June 2024.
The increase in borrowing under the current administration, led by President Bola Ahmed Tinubu, is reportedly aimed at stabilising the economy and curbing hyperinflation.
This development elevated Nigeria’s ranking from fourth to third among the largest debtors.
According to the World Bank’s latest financial statement for the fiscal year ending September 2024, Pakistan is the largest borrower, with a total debt of $21 billion, followed by Bangladesh, with $18.5 billion, and Nigeria, with $17.1 billion.
Other countries ranked in descending order are India ($15.9 billion), Ethiopia ($13.1 billion), Kenya ($12.4 billion), Tanzania ($12.2 billion), Vietnam ($12.2 billion), Ghana ($7 billion), and Uganda ($5 billion).
These ten countries collectively account for 63 percent of IDA’s total exposure, highlighting their significant reliance on concessional financing, which offers favourable payment plans and low interest rates.
The IDA has set its Single Borrower Limit (SBL) at $47.5 billion for FY2025, representing 25 percent of its $190.3 billion equity as of June 30, 2024.
Although Nigeria’s debt is substantial, it remains within the SBL threshold, which the World Bank considers non-restrictive at present.
The financial statement noted, “As of September 30, 2024, the ten countries with the highest exposures accounted for 63 percent of IDA’s total exposure. Monitoring these exposures relative to the SBL requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees.”
Despite the World Bank’s report on Nigeria’s rising debt, the Central Bank of Nigeria (CBN) previously disclosed that the Federal Government spent $3.58 billion servicing foreign debt in the first nine months of 2024. This figure represents a 39.77 percent increase compared to the $2.56 billion spent during the same period in 2023.