Nigeria has risen to become the third-largest debtor to the World Bank's International Development Association (IDA), with a total debt of $16.5 billion as of June 30, 2024. This represents a 14.4% increase from $14.3 billion in the fiscal year 2023.
The country secured $2.2 billion in loans from the IDA under President Bola Tinubu's administration, contributing to its growing public debt burden
The IDA provides concessional loans and grants to the world's poorest countries, aiming to reduce poverty and boost economic growth. Nigeria's increasing reliance on IDA loans raises concerns about its long-term economic sustainability and ability to manage and service this mounting debt.
Nigeria's debt profile is a weighty challenge, with a total public debt stock of about $100 billion in 2022. The country's external debt stock was $41.69 billion, with multilateral lenders accounting for almost half of this figure. The high cost of governance, wasteful spending, and corruption are identified as key issues that need to be addressed to manage the debt effectively.
Bangladesh remains the largest IDA debtor, with its exposure increasing from $19.3 billion in 2023 to $20.5 billion in 2024. Pakistan holds the second position with a stable exposure of $17.9 billion.
