Rita Odafe
Nigeria has now become the third-largest debtor to the World Bank’s International Development Association (IDA), showcasing a substantial increase in the country’s borrowing from the institution.
As per the financial statements of the World Bank, Nigeria’s exposure to the IDA saw a 14.4% rise from $14.3 billion in the fiscal year (FY) of 2023 to $16.5 billion in FY2024.
This increment of $2.2 billion has propelled Nigeria into the top three IDA debtors category for the first time, a shift from its previous fourth position in 2023.
The 2024 fiscal year spans from July 2023 to June 2024, indicating that Nigeria received a minimum of $2.2 billion from the World Bank during President Bola Tinubu’s administration.
It is important to note that this debt is distinct from any existing loan from the World Bank’s International Bank for Reconstruction and Development (IBRD).
While Bangladesh continues to hold the top position as the largest IDA debtor, with its exposure growing from $19.3 billion in 2023 to $20.5 billion in 2024, Pakistan maintains its second rank with a consistent exposure of $17.9 billion during the same period.
India, previously the third-largest borrower in 2023 with $17.9 billion, experienced a reduction in its IDA exposure to $15.9 billion in 2024, allowing Nigeria to surpass it.
Other noteworthy IDA borrowers include Ethiopia, with its exposure increasing from $11.6 billion in 2023 to $12.2 billion in 2024, as well as Kenya and Vietnam, both at $12.0 billion in 2024.
These countries, alongside Tanzania, Ghana, and Uganda, constitute the top ten IDA debtors, collectively representing 63% of the IDA’s total exposure as of June 30, 2024.
