Nigeria has risen to become the third-largest debtor to the World Bank’s International Development Association (IDA) as of June 30, 2024, owing to a huge increase in the country’s borrowing from the institution.
Nigeria’s exposure to the IDA increased by 14.4% from $14.3 billion in the fiscal year (FY) of 2023 to $16.5 billion in FY2024, as per the World Bank’s financial filings.
Nigeria, which was the fourth-largest borrower in 2023, is now among the top three IDA borrowers for the first time thanks to this $2.2 billion rise.
Under President Bola Tinubu’s leadership, Nigeria has received at least $2.2 billion from the World Bank for the fiscal year 2024, which spans from July 2023 to June 2024.
This debt is not the same as any outstanding International Bank for Reconstruction and Development (IBRD) loan from the World Bank.
Other leading debtors
With an increase in its exposure from $19.3 billion in 2023 to $20.5 billion in 2024, Bangladesh continues to be the largest IDA debtor. Pakistan comes next, holding onto its second place throughout the same period with a consistent exposure of $17.9 billion.
With $17.9 billion in 2023, India was the third-largest borrower; however, in 2024, its IDA exposure dropped to $15.9 billion, allowing Nigeria to overtake it.
Ethiopia, whose exposure increased from $11.6 billion in 2023 to $12.2 billion in 2024, Kenya, and Vietnam, both of which had $12.0 billion in 2024, are among the other notable IDA borrowers.
As of June 30, 2024, these nations, Tanzania, Ghana, and Uganda make up the top ten IDA debtors, with a combined 63% of the IDA’s overall exposure.
What to note
One of the main branches of the World Bank is the International Development Association (IDA), which is tasked with giving grants and loans at favourable interest rates to the world’s poorest nations.
These loans, which have extended payback terms and low interest rates, are intended to promote economic development, lessen inequality, and enhance living standards in developing nations.
Prior to this, THE NEWS CHRONICLES had previously reported that Nigeria had obtained $4.95 billion in loans under Tinubu from the World Bank in response to worries about the nation’s growing foreign debt payment expenses.
Nigeria has only gotten roughly 16% of these new loans, though.
This year, the World Bank might approve four credit projects for Nigeria totaling $2 billion.
According to information from the Debt Management Office’s (DMO) foreign debt stock report, as of March 31, 2024, Nigeria owed the World Bank a total of $15.59 billion.
