The World Bank noted that the top ten debtors now account for 63% of IDA’s total exposure.
Abuja – Nigeria has become the third-largest debtor to the International Development Association (IDA), the concessional arm of the World Bank, according to a financial statement released by the institution.
As of June 30, 2024, Nigeria’s debt exposure to the IDA increased to $16.5 billion, reflecting a 14.4% rise from the $14.3 billion recorded at the end of 2023. This represents an additional $2.2 billion in borrowing over the first six months of the year.
The IDA provides low-interest loans and grants to the world’s poorest countries, with the aim of promoting economic growth, reducing inequality, and improving living conditions.
Nigeria now ranks behind only Bangladesh, which leads the IDA debt list with $20.5 billion, and Pakistan with $17.5 billion. India, which previously held the third spot, dropped to fourth after reducing its exposure from $17.9 billion in 2023 to $15.9 billion.
Other major borrowers include Ethiopia, Kenya, and Vietnam, each with around $12 billion in debt. Tanzania, Ghana, and Uganda round out the bottom of the top ten debtors, with $11.7 billion, $6.7 billion, and $4.8 billion, respectively.
The World Bank noted that the top ten debtors now account for 63% of IDA’s total exposure. “Monitoring these exposures relative to the Sustainable Borrowing Limit (SBL) requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees,” the Bank said.
This rise in Nigeria’s IDA debt comes amid broader concerns about the country’s escalating public debt. According to the Debt Management Office (DMO), Nigeria’s total public debt surged to N121.67 trillion in the first quarter of 2024, up from N97 trillion in December 2023. The increase is attributed to new domestic borrowing to address the budget deficit, alongside disbursements from multilateral and bilateral lenders.
The DMO report indicated that Nigeria’s domestic debt stood at N65.65 trillion ($46.29 billion), while external debt amounted to N56.02 trillion ($42.12 billion).
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