Owing to the World Bank’s International Development Association (IDA), Nigeria has become the third-largest debtor, with a total debt of $16.5 billion as of June 30, 2024. This information was revealed in a recently published financial statement.
The IDA provides concessional loans and grants to the world’s poorest countries to promote economic growth, reduce inequalities, and improve living conditions. Nigeria’s debt to the IDA increased by 14.4% from $14.3 billion in fiscal year 2023 to $16.5 billion in fiscal year 2024.
This significant increase marks Nigeria’s first appearance among the top three IDA debtors, moving up from its previous position as the fourth-largest borrower in 2023. During the fiscal year from July 2023 to June 2024, Nigeria received at least $2.2 billion in new loans from the IDA under President Bola Tinubu’s administration.
It is important to note that this borrowing does not include any outstanding loans from the World Bank’s International Bank for Reconstruction and Development, which is separate from the IDA. Nigeria’s growing debt to the IDA raises concerns about the country’s financial management and its ability to meet its repayment obligations.
