As of June 30, 2024, Nigeria was the third-largest debtor to the World Bank's International Development Association (IDA), according to a financial statement released by the organization.
Nigeria's exposure to IDA increased to $16.5 billion as of June 30, according to the financial statement. This represents a 14.4% increase, or $2.2 billion, over the $14.3 billion recorded at the end of 2023.
The World Bank's IDA division is a vital component that offers grants and loans at preferential rates to the world's poorest nations. The low interest rates and long tenors of the loans are intended to encourage economic growth, lessen inequality, and enhance living circumstances in developing countries.
Bangladesh tops the IDA debt list at $20.5 billion, followed by Pakistan
having a $17.5 billion exposure.
After reducing its IDA exposure from $17.9 billion in 2023, Nigeria pushed India to the fourth rank with $15.9 billion; Ethiopia, Kenya, and Vietnam followed with $12.2 billion, $12.0 billion, and $12.0 billion, respectively.
Tanzania, with $11.7 billion, Ghana, with $6.7 billion, and Uganda, with $4.8 billion, are the three least wealthy nations on the list.
The ten nations with the greatest exposures as of June 30, 2024, made about 63% of IDA's overall exposure.
According to the World Bank, "monitoring these exposures relative to the SBL requires consideration of existing loan repayment profiles, as well as disbursement profiles and projected new loans and guarantees." Remember that the Debt Management Office (DMO) stated that the entire population of Nigeria In the first quarter of 2024, debt climbed to N121.67 trillion from N97 trillion in December 2023.
DMO claims that increased domestic borrowing by the federal government to partially finance the budget deficit in 2024 and payments from bilateral and multilateral lenders were the main causes of the increase.
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