As of June 30, 2024, Nigeria has become the third largest debtor to the World Bank’s International Development Association (IDA), according to a recently published financial statement.
The report reveals that Nigeria’s debt exposure to the IDA has risen to $16.5 billion, marking an increase of $2.2 billion, or 14.4%, from $14.3 billion at the end of 2023.
The IDA, a crucial arm of the World Bank, offers concessional loans and grants to the world’s poorest nations. These financial aids are aimed at fostering economic growth, reducing inequalities, and enhancing living conditions in developing countries, and are known for their low interest rates and extended repayment periods.
Leading the IDA debt rankings is Bangladesh, with an exposure of $20.5 billion, followed by Pakistan at $17.5 billion. Nigeria’s debt level has surpassed India’s, which now holds the fourth position with $15.9 billion, down from $17.9 billion in 2023. Ethiopia, Kenya, and Vietnam follow with exposures of $12.2 billion, $12.0 billion, and $12.0 billion, respectively.
At the lower end of the spectrum are Tanzania with $11.7 billion, Ghana with $6.7 billion, and Uganda with $4.8 billion.
The World Bank noted that as of June 30, 2024, the top ten countries with the highest IDA exposures collectively account for 63% of the IDA’s total exposure. “Monitoring these exposures relative to the SBL requires consideration of existing loan repayment schedules, disbursement profiles, and anticipated new loans and guarantees,” the report stated.
Additionally, the Debt Management Office (DMO) of Nigeria has reported a rise in the country’s total public debt to N121.67 trillion as of the first quarter of 2024, up from N97 trillion in December 2023. This increase is attributed mainly to new domestic borrowing by the federal government to cover the 2024 budget deficit, alongside disbursements from multilateral and bilateral lenders.
According to the DMO, Nigeria’s total domestic debt stands at N65.65 trillion ($46.29 billion), while the total external debt amounts to N56.02 trillion ($42.12 billion).
