By John Ikani
Nigeria has climbed to the third spot among the World Bank’s International Development Association (IDA) debtors, reflecting a notable rise in the country’s financial obligations to the institution.
The World Bank’s latest financial disclosures indicate that Nigeria’s debt with the IDA surged by 14.4%, from $14.3 billion in the fiscal year 2023 to $16.5 billion in fiscal year 2024.
This $2.2 billion increase has pushed Nigeria into the top three IDA debtors, a significant jump from its fourth-place position in 2023.
The fiscal year 2024 spans from July 2023 to June 2024, suggesting that Nigeria, under President Bola Tinubu’s leadership, secured at least $2.2 billion from the World Bank during this period.
This debt is separate from any existing obligations Nigeria has with the World Bank’s International Bank for Reconstruction and Development (IBRD).
Bangladesh continues to hold the top position as the largest IDA debtor, with its debt increasing from $19.3 billion in 2023 to $20.5 billion in 2024. Pakistan maintains its second place, with a stable debt figure of $17.9 billion over the same period.
India, which ranked third in 2023 with a debt of $17.9 billion, saw a decrease in its IDA debt to $15.9 billion in 2024, allowing Nigeria to move ahead.
Ethiopia is another significant IDA borrower, with its debt increasing from $11.6 billion in 2023 to $12.2 billion in 2024. Meanwhile, Kenya and Vietnam each have IDA debts of $12.0 billion in 2024.
These nations, alongside Tanzania, Ghana, and Uganda, make up the top ten IDA borrowers, collectively accounting for 63% of the IDA’s total debt as of June 30, 2024.
What you should know
The International Development Association (IDA) is a crucial part of the World Bank, focusing on providing low-interest loans and grants to the world’s poorest nations.
These financial aids are designed to promote economic development, address inequality, and enhance living conditions in developing countries.
It is worth noting that Nigeria secured $4.95 billion in World Bank loans during Tinubu’s tenure, amidst rising concerns over the nation’s growing external debt servicing costs.
However, Nigeria has only accessed around 16% of these new loans.
The World Bank is expected to approve four additional loan projects for Nigeria this year, totaling $2 billion.
According to the Debt Management Office’s external debt report, as of March 31, 2024, Nigeria’s total debt to the World Bank stands at $15.59 billion.
