Nigeria’s World Bank IDA Debt Climbs To $18.2bn

Nigeria has maintained its position as the third-largest debtor to the World Bank’s International Development Association (IDA), with outstanding obligations rising to $18.2bn as of June 30, 2025. This represents a $1.7bn—or about 10.3 per cent—increase from $16.5bn in June 2024.

The IDA, the concessional lending arm of the World Bank, provides low-interest or interest-free loans and grants to the world’s poorest nations. While its loans come with long maturities and grace periods, Nigeria’s rising debt highlights the scale of its financing needs and growing dependence on concessional funding.

Nigeria first moved into the third position among IDA’s top borrowers in 2024, up from fourth place in 2023, and has retained this spot in 2025.

Globally, Bangladesh remains the largest IDA borrower, with its debt climbing from $20.5bn in June 2024 to $22.6bn in June 2025. Pakistan follows in second place, with obligations increasing from $17.9bn to $19.3bn over the same period. India, which previously ranked ahead of Nigeria, saw its exposure decline from $15.9bn to $14.2bn, largely due to repayments exceeding fresh disbursements. Ethiopia, with debt rising from $12.2bn to $14.0bn, completes the top five.

Other significant shifts in 2025 include Tanzania’s debt rising from $11.7bn to $13.7bn, overtaking Kenya at $13.0bn, while Vietnam’s exposure dropped to $11.6bn. Ghana’s debt grew modestly to $7.2bn, and Côte d’Ivoire entered the top ten with $6.2bn, displacing Uganda. Altogether, the top ten borrowers accounted for 61 per cent of IDA’s portfolio in 2025, down slightly from 63 per cent in 2024.

Recent data from Nigeria’s Debt Management Office also shows that the country’s total debt to the World Bank reached $18.23bn as of March 31, 2025, representing about 39.7 per cent of its total external debt stock of $45.98bn. The World Bank now accounts for over 81 per cent of Nigeria’s total multilateral debt.

Analysts note that while concessional loans offer more favourable terms than commercial borrowing, Nigeria’s reliance on them continues to raise concerns about debt sustainability. They stress the importance of ensuring that projects financed by these loans directly strengthen the country’s capacity to repay, particularly by expanding revenue sources.

Experts have further cautioned that excessive dependence on external debt could expose the country to exchange rate risks and fiscal vulnerability, underscoring the need for a disciplined borrowing strategy aligned with Nigeria’s economic priorities.

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