Nigeria has climbed to the third spot among the world’s largest debtors to the World Bank’s International Development Association (IDA), with the country’s exposure reaching $16.5 billion as of June 30, 2024.
This represents a 14.4% increase from the $14.3 billion reported at the end of 2023, according to the latest financial statement from the World Bank.
The IDA, a critical arm of the World Bank, provides concessional loans and grants to the world’s poorest countries, aimed at promoting economic growth, reducing inequality, and improving living conditions.
These loans come with low-interest rates and extended repayment periods.
Leading the IDA debtor list is Bangladesh with $20.5 billion, followed by Pakistan with $17.5 billion.
Nigeria’s rise to third place pushed India, which reduced its exposure from $17.9 billion in 2023 to $15.9 billion, to fourth place.
Other countries following closely include Ethiopia with $12.2 billion, and Kenya and Vietnam, both with $12.0 billion.
At the bottom of the list are Tanzania with $11.7 billion, Ghana with $6.7 billion, and Uganda with $4.8 billion.
The World Bank noted that “as of June 30, 2024, the ten countries with the highest exposures accounted for 63% of IDA’s total exposure.”
Nigeria’s rising debt profile has also been highlighted by the Debt Management Office (DMO), which reported a total public debt of N121.67 trillion in the first quarter of 2024, a significant jump from N97 trillion in December 2023.
The increase was attributed to new domestic borrowing to address the 2024 budget deficit and disbursements from multilateral and bilateral lenders.
The DMO further reported that total domestic debt stood at N65.65 trillion ($46.29 billion), while external debt reached N56.02 trillion ($42.12 billion).
The report serves as a reminder of Nigeria’s growing financial challenges, as the country grapples with mounting debt and the impact on its citizens.
