Nigeria has retained its position as the third-largest debtor to the World Bank’s International Development Association (IDA), with outstanding obligations of $18.2bn as of June 30, 2025. This represents a rise from $16.5bn in June 2024 an increase of $1.7bn, or roughly 10.3 per cent, within one year.
The IDA’s latest financial statements show that Nigeria first climbed to third place in 2024, up from its previous ranking as the fourth-largest borrower in 2023, and has maintained this position into 2025.
The IDA, the concessional lending arm of the World Bank Group, provides low-interest or interest-free loans and grants to the world’s poorest countries. While these loans come with long maturities and generous grace periods, Nigeria’s rising debt stock highlights both the scale of its financing needs and its growing dependence on concessional funding.
During the fiscal year from July 2023 to June 2024, Nigeria received at least $2.2bn in new loans from the IDA. In total, $3.9bn has been disbursed to the country between June 2023 and June 2025 under President Bola Tinubu’s administration. This figure excludes outstanding loans from the International Bank for Reconstruction and Development (IBRD), a separate arm of the World Bank.
Globally, Bangladesh remains the largest IDA borrower, with debt rising from $20.5bn in June 2024 to $22.6bn in June 2025. Pakistan follows in second place, with its obligations climbing from $17.9bn to $19.3bn in the same period. India, once ranked ahead of Nigeria, saw its debt fall sharply from $15.9bn in June 2024 to $14.2bn in June 2025, largely due to higher repayments. Ethiopia rounds out the top five with $14.0bn, up from $12.2bn a year earlier.
Other notable shifts in 2025 include Tanzania, whose debt surged from $11.7bn to $13.7bn, overtaking Kenya, which also recorded an increase to $13.0bn. Vietnam’s exposure declined to $11.6bn, while Ghana’s debt rose to $7.2bn. Côte d’Ivoire entered the top ten list with $6.2bn, displacing Uganda. Collectively, the IDA’s top ten borrowers accounted for 61 per cent of its total exposure in 2025, down slightly from 63 per cent in 2024.
Nigeria’s sustained position among the IDA’s largest debtors reflects its persistent financing gaps in infrastructure, energy access, and poverty reduction. Although IDA loans are cheaper than market borrowing, their steady accumulation continues to raise concerns about the country’s overall debt sustainability.
According to data from the World Bank, Nigeria secured $8.4bn in fresh loans across 15 projects between June 2023 and August 2025. Of this, $6.5bn came from the IDA and $1.95bn from the IBRD. Data from Nigeria’s Debt Management Office (DMO) further showed that the country’s total debt to the World Bank rose to $18.23bn as of March 31, 2025, up from $17.81bn in December 2024.
The World Bank Group now accounts for about 39.7 per cent of Nigeria’s total external debt stock of $45.98bn, and 81.2 per cent of the country’s multilateral debt, underlining its central role in Nigeria’s financing framework.
Economist and CEO of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, noted that while deficit financing is common in government budgets, borrowing must be guided by sound economic reasoning and clear development priorities. He cautioned that without adequate revenue generation, Nigeria risks falling into a cycle of borrowing to service existing debt.
He added that foreign borrowing carries exchange rate risks that can pressure reserves and weaken the naira, stressing the importance of a disciplined approach to ensure debt sustainability.