Nigeria Becomes Third-Largest Debtor to World Bank’s IDA, Overtakes India

Nigeria has ranked third among the World Bank’s International Development Association (IDA) debtors. The country’s debt increased by $2.2 billion,  from $14.3 billion in 2023 to $16.5 billion in 2024. This 14 per cent increase occurred from July 2023 to June 2024 under President Bola Tinubu’s administration.

The development places Nigeria among the top three IDA debtors for the first time, surpassing India, whose debt dropped to $15.9 billion in 2024. Bangladesh remains the largest IDA debtor, with $20.5 billion, followed by Pakistan at $17.9 billion. Ethiopia, Kenya, and Vietnam are also notable debtors.

The IDA, a branch of the World Bank, provides low-interest loans and grants to poor countries to promote economic growth. Nigeria secured $4.95 billion in loans under Tinubu, although only 16 per cent of these funds have been accessed. The World Bank is expected to approve additional loans totalling $2 billion for Nigeria this year.

According to data from the Debt Management Office, Nigeria’s public debt stood at approximately N97 trillion as of December 2023. As of March 31, 2024, Nigeria owes the World Bank a total of  $15.59 billion, separate from other obligations like those to the International Bank for Reconstruction and Development (IBRD).

 Read Also: Alert: FG To Borrow $500M In Foreign Currency Bonds From Nigerians Abroad, Debt Crisis May Worsen

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