Nigeria Gets New Position as World Bank Unveils Its Most Indebted Countries
- President Bola Tinubu’s government has borrowed about $2.2 billion in loans from the World Bank’s IDA
- The new borrowings make Nigeria the IDA’s third-most indebted country, with $16.4 billion
- In total, Nigeria’s debt to the World Bank has surged, according to data from the Debt Management Office (DMO)
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria has emerged as the third largest debtor to the World Bank’s International Development Association (IDA) as of June 30, 2024, marking an increase in Nigeria’s borrowing from the institution.
The development has shown a substantial move in Nigeria’s financial terrain under the government of President Bola Tinubu.
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Nigeria’s World Bank loans increase
The World Bank’s latest financials show that Nigeria’s exposure to the IDA has spiked by 14.4% from $14.3 billion in 2023 to $16.5 billion in 2024.
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The $2.2 billion increase in borrowing has moved Nigeria into the top three IDA debtors for the first time from its previous fourth position in 2023.
The 2024 fiscal year spans from July 2023 to June 2024, during which Nigeria got at least $2.2 billion in loans from the World Bank.
According to reports, the period aligns with the administration of President Bola Tinubu, showing the increasing dependence on international financial support from the institution.
Top 10 IDA debtors
Most importantly, the debt concerns the IDA and is separate from Nigeria's outstanding loans with the World Bank’s International Bank for Reconstruction and Development (IBRD).
Other top IDA debtors include Bangladesh, which retains its position as the largest borrower. Its debt exposure rose from $19.3 billion in 2023 to $20.5 billion in 2024.
Per the World Bank’s financials, Pakistan follows with a debt exposure of $17.9 billion over the same period.
India, the former third-most indebted country to the IDA, with $17.9 billion in 2023, moved to fourth place with $15.9 billion as of June 2024.
Other countries include Ethiopia, which had $12.2 billion in debt exposure in 2024, from $11.6 billion in 223.
Other notable IDA borrowers include Ethiopia, whose exposure grew from $11.6 billion in 2023 to $12.2 billion in 2024.
Kenya and Vietnam occupy the same position with a debt exposure of $12.0 billion.
Tanzania, Ghana, and Uganda comprise the top 10 IDA borrowers, accounting for 63% of the total exposure as of June 30, 2024.
Nigeria’s World Bank loans unveiled
The IDA is an essential arm of the World Bank and focuses on providing concessional loans and grants to the world’s most vulnerable and poorest countries.
Reports say Nigeria got about $4.95 billion in loans from the World Bank under Tinubu.
However, about 16% of these loans have been received so far, and the Work Bank may approve an additional four loan projects for Nigeria in 2024, totalling $2 billion.
Data from the Debt Management Office shows that Nigeria’s total debt to the World Bank stood at $15.59 billion as of March 31, 2024.
CBN data shows the amount used for debt servicing in 2024
Legit.ng previously reported that the Nigerian government had spent about $2.78 billion on debt-servicing in the first seven months of 2024.
The Central Bank of Nigeria’s (CBN) data on international payments shows that the figure is about 64% of the total $4.636 billion in official USD payments made between January and July 2024 by the bank on behalf of the federal government.
In the same period in 2023, Nigeria spent 46% of its total international payments servicing debts, meaning an increase of 39.13% in 2024.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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