Nigeria has become the third-largest debtor to the World Bank s International Development Association, (IDA).
According to the World Bank, Nigeria had $16.5bn loan exposure as of June 2024, as published in a financial statement dated June 30 2024, recently released by the World Bank.
The IDA, a key arm of the World Bank, provides concessional loans and grants to the worlds poorest countries. These loans, characterised by low interest rates and extended repayment periods, are designed to promote economic growth, reduce inequalities, and improve living conditions in developing nations.
The loans to Nigeria increased by $2.2 billion, when compared to the $14.3 billion recorded at the end of 2023.
Ahead of Nigeria on the IDA debt list are Bangladesh, with $20.5 billion, followed by Pakistan with $17.5 billion exposure. India occupies the fourth spot with $15.9 billion, while Ethiopia, Kenya and Vietnam followed with $12.2 billion, $12.0 billion, and $12.0 billion, respectively.
The three countries at the bottom of the list are Tanzania ($11.7 billion), Ghana ($6.7 billion) and Uganda ($4.8 billion). As of June 30, 2024, the ten countries with the highest exposures accounted for 63% of IDAs total exposure, the World Bank said.
Recall that the Debt Management Office (DMO), on June 20, said Nigerias total public debt increased to N121.67 trillion in the first quarter (Q1) of 2024, compared to the N97 trillion recorded in December 2023.
According to the DMO, the increase was primarily due to new domestic borrowing by the federal government to partly fund the deficit in the 2024 budget as well as disbursements by multilateral and bilateral lenders.
The debt office said total domestic debt was N65.65 trillion ($46.29 billion), while total external debt was N56.02 trillion ($42.12 billion).
