Nigeria’s debt to the International Development Association (IDA), the World Bank’s concessional lending arm, reached $18.7 billion by the end of 2025, positioning the country as the third-largest borrower in the IDA portfolio.
World Bank data show that only Bangladesh, with $23.0 billion, and Pakistan, at $19.4 billion, have higher IDA exposures among the top ten borrowers. Nigeria’s obligations grew by $1.9 billion over the year, an 11.3% increase from $16.8 billion at the end of 2024, reflecting a rising reliance on concessional external financing.
Collectively, the top borrowing nations accounted for 60% of IDA’s total exposure in 2025, slightly down from 61% in 2024. While IDA loans offer long repayment periods, low interest rates, and extended grace periods, the increasing debt adds to Nigeria’s external liabilities and fiscal pressures. Analysts say the trend highlights the country’s urgent need for funds to support infrastructure and development priorities.
IDA emphasized the importance of monitoring exposure levels, considering repayment schedules, disbursement trends, and projected new loans and guarantees.
Through IDA, the World Bank provides financial and technical support to low-income countries, funding projects in education, health, water and electricity access, climate initiatives, and governance reforms.
Nigeria’s growing IDA debt underscores both its development financing needs and continued dependence on multilateral support to address pressing socio-economic challenges.
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