Nigeria’s debt to the World Bank’s concessional lending arm, the International Development Association (IDA), rose to $18.7 billion as of December 31, 2025, making the country the third-largest borrower in the IDA portfolio.

Latest data from the World Bank shows that Nigeria trails only Bangladesh, with an exposure of $23.0 billion, and Pakistan, which recorded $19.4 billion, among the top 10 countries with the highest IDA exposures.

The figures indicate that Nigeria’s outstanding obligations to the institution increased by $1.9 billion within one year, rising from $16.8 billion at the end of 2024. This represents an 11.3 percent year-on-year increase, highlighting the country’s growing reliance on concessional external financing.

According to the report, Nigeria and other top borrowing countries collectively accounted for 60 percent of IDA’s total exposure as of the end of 2025, slightly lower than the 61 percent recorded in 2024.

Although IDA loans are considered highly concessional—often featuring long repayment tenures, low interest rates, and extended grace periods—the growing stock of debt continues to add to Nigeria’s external obligations. Analysts note that the trend underscores rising fiscal pressure amid Nigeria’s need to fund infrastructure and development priorities.

IDA stressed the need for careful monitoring of exposure levels in relation to repayment and future lending profiles.

The institution noted: “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, through IDA, supports long-term economic development and poverty reduction by providing financial and technical assistance to eligible low-income countries. These funds are often channelled into projects such as building schools, expanding access to water and electricity, combating disease, supporting climate initiatives, and strengthening governance reforms.

Nigeria’s rising exposure to IDA reflects both its developmental financing needs and continued dependence on multilateral support in addressing key socio-economic challenges.

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