President Biden commits $4 billion to World Bank’s IDA to support poorest nations 

The pledge was made during a closed-door meeting with other Group of 20 (G20) leaders in Rio de Janeiro on Monday, according to a senior administration official.

The three-year commitment aims to strengthen the IDA’s resources amid uncertainty surrounding the incoming administration of President-elect Donald Trump.

IDA, which relies on periodic replenishments of donor funds, plays a critical role in financing development projects for approximately 75 of the world’s poorest countries.

However, the disbursement of the pledged funds will require Congressional approval—a process that may face delays until after Trump assumes office in January.

During his first administration, Trump and his advisers advocated for more unilateral approaches to development financing, including the establishment of the International Development Finance Corporation (DFC).

The IDA has supported many projects in Nigeria, including the Nigeria Electrification Project (NEP), which uses IDA credits to provide reliable electricity to households, businesses, universities, and hospitals through solar systems.

Under the financing plan for the project, which was approved by the World Bank unit in 2020, AFD is to release $100 million and the EIB is to fund it with $215, while the IDA is to add $115 million.