Nigeria Ranks High as World Bank Releases List of Top 10 Most Indebted Countries in 2024
- Nigeria has maintained its position as the third most indebted country to the International Development Association
- The World Bank disclosed this in its 2024 financial statement, saying that Nigeria’s debt to the IDA has climbed to $17.1 billion
- The West African country maintained its position as the third-largest debtor, receiving $2.8 billion from the IDA
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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 remained the third-largest debtor to the World Bank’s International Development Association, with its debt climbing to $17.1 billion as of September 30, 2024.
The World Bank’s latest financials for 2024 showed that Nigeria’s debt to the global lender increased by $600 million in three months from $16.5 billion in June 2024.
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Nigeria leads African countries
Nigeria recorded a 14.4% increase between the June figure and the $14.3 billion in June 2023.
The country received an additional $2.2 billion in loans during the fiscal year from July 2023 to June 2024.
Nigeria rose to the top three IDA creditors in June 2024 for the first time, from the fourth position the year before.
The West African country maintained its position as the third-largest debtor, receiving $2.8 billion from the IDA during Tinubu’s administration.
Top creditors to the World Bank
Bangladesh leads the pack with debt exposure of $21 billion and $18.5 billion, respectively.
India maintained its debt at $15.9 billion, while Ethiopia ranks next with $13.1 billion.
Other top creditors to the IDA include Kenya, with a $12.4 billion debt; Tanzania, with a $12.2 billion debt; and Vietnam, with a $12.2 billion debt.
Ghana and Uganda remained the least indebted countries, with $7 billion and $5 billion, respectively.
These countries account for 63% of IDA’s exposure, showing their heavy dependence on concessional loans.
The organisation set its Single Borrower Limit (SBL) at $47.5 billion for 2025, representing 25% of its $190.3 billion as of June 30, 2024.
Experts believe Nigeria’s debt remains within the SBL ceiling despite significant increases.
Punch reports that Nigeria’s loans from the IDA differ from its obligation to the World Bank’s International Bank for Reconstruction and Development, which provides financing at market rates.
Nigeria’s debt servicing rises in 2024
Nigeria has depended heavily on concessional loans for critical infrastructure financing, especially under President Bola Tinubu.
Legit.ng earlier reported that the Nigerian government spent $3.5 billion servicing foreign debts in the first three quarters of 2024, representing a staggering 37.77% increase from the $2.56 billion spent in the corresponding period in 2023.
According to data from the Central Bank of Nigeria, external debt service payments have significantly increased.
Nigeria’s debt rises under Tinubu
Legit.ng earlier reported that in the first half of 2024, the federal government spent $1.36 billion to pay off outstanding obligations to 12 international and multilateral creditors.
This is based on publicly available data from the Debt Management Office (DMO) reports.
The amount paid from January to June 2024 is 216.07% higher than the $431.23 million recorded during the same period in 2023.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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