Nigeria’s debt to the World Bank’s concessional lending arm, the International Development Association (IDA), has risen to $18.7 billion as of December 31, 2025, making it the third-largest borrower in the IDA portfolio, behind Bangladesh ($23.0bn) and Pakistan ($19.4bn), among the top ten countries with the highest exposures.
Latest data released by the institution shows that Nigeria’s debt surged by $1.9 billion in one year, from $16.8 billion at end of 2024, marking an 11.3 per cent year-on-year increase.
According to the data, Nigeria, alongside the countries accounted for 60 per cent of IDA’s total exposure as of December 31, 2025, a marginal decline from 2024 when the countries accounted for 61 per cent of total exposure.
While IDA financing is highly concessional, with long maturities and grace periods, the growing stock adds to Nigeria’s external debt obligations.
IDA emphasised the importance of monitoring such exposures in the context of repayment and future disbursement profiles, noting, “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.”
