Nigeria’s World Bank IDA Debt Rises to $18.7bn

Nigeria’s debt to the concessional lending arm of the World Bank, the International Development Association, climbed to $18.7bn as of December 31, 2025, reflecting a $1.9bn increase within one year.

The latest financial data show the country’s exposure rose from $16.8bn at the end of the previous year, representing an 11.3 per cent annual increase and signalling Nigeria’s growing dependence on multilateral concessional funding amid fiscal pressures and volatile global markets.

The new figures place Nigeria as the third-largest borrower in the IDA portfolio, behind Bangladesh and Pakistan. Collectively, the ten largest borrowers account for roughly 60 per cent of IDA’s total exposure.

The increase largely reflects ongoing project disbursements tied to development programmes in health, education, and infrastructure. Although IDA loans carry favourable terms such as long repayment periods and grace windows, the expanding stock adds to Nigeria’s external debt obligations.

The institution emphasised the need to track loan exposures against repayment schedules and expected disbursements to ensure sustainability.

Overall, IDA’s portfolio expanded during the period, with total net loans rising to $226.4bn from $205.8bn a year earlier, reflecting broader expansion of concessional financing supported by contributions from member countries and capital-market borrowing.

Nigeria’s exposure now exceeds that of several other major African borrowers, reinforcing its importance within the World Bank’s development portfolio.

As of mid-2025, Nigeria’s external debt stood at $46.98bn, with the World Bank Group accounting for over 40 per cent. Analysts warn that while concessional loans help finance development, debt sustainability ultimately depends on the country’s revenue strength and ability to generate foreign exchange for repayment.

Economists stress that borrowing is not inherently problematic if tied to productive investments. However, excessive foreign debt, especially in a volatile exchange-rate environment, could strain reserves and deepen fiscal vulnerabilities if not carefully managed.