Nigeria Becomes World Bank’s Third Largest Debtor, Owes $16.5 Billion

A financial statement published by the World Bank has placed Nigeria as the third largest debtor to the Bank’s International Development Association (IDA) as of June 30, 2024.

According to the financial statement, Nigeria’s exposure to IDA rose to $16.5 billion as at June 30, which is an increase of $2.2 billion, or 14.4% over $14.3 billion recorded at the end of 2023.

IDA is a key arm of the World Bank which provides concessional loans and grants to the world’s poorest countries. The loans are designed to promote economic growth, reduce inequalities, and improve living conditions in developing nations, and are characterised by low interest rates and long tenors.

On top of the IDA debt list is Bangladesh with $20.5 billion, followed by Pakistan with $17.5 billion exposure.

Nigeria pushed India to the fourth spot with $15.9 billion after the country reduced its IDA exposure from $17.9 billion in 2023; while Ethiopia, Kenya and Vietnam followed with $12.2 billion, $12.0 billion, and $12.0 billion, respectively.

The three countries at the bottom of the list are Tanzania with $11.7 billion, Ghana $6.7 billion, and Uganda with $4.8 billion.

As of June 30, 2024, the ten countries with the highest exposures accounted for 63% of IDA’s total exposure.

“Monitoring these exposures relative to the SBL requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees,” the World Bank said. Recall that the Debt Management Office (DMO) reported that Nigeria’s total public debt increased to N121.67 trillion in the first quarter of 2024, compared to the N97 trillion recorded in December 2023.