With a cumulative debt of $16.5 billion, Nigeria is now the third-largest debtor to the World Bank’s International Development Association (IDA).
The IDA, a key arm of the World Bank, provides concessional loans and grants to the world’s poorest countries.
The loans are characterised by low interest rates and extended repayment periods, and are designed to promote economic growth, reduce inequalities, and improve living conditions in developing nations.
The data, published in a financial statement and released by the World Bank is as of June 30, 2024.
It indicated that the loans to Nigeria increased by $2.2 billion compared to the $14.3 billion recorded at the end of 2023.
Leading the pack of IDA debtors are Bangladesh, with $20.5 billion and Pakistan with $17.5 billion.
India occupies the fourth spot with $15.9 billion, while Ethiopia, Kenya and Vietnam follow 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 IDA’s total exposure.
“Monitoring these exposures relative to the SBL requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees,” the World Bank said.
