Nigeria has been ranked as the largest debtor in Africa and the third-largest in the world to the World Bank’s International Development Association (IDA), according to the Bank’s financial statement.
Nigeria’s loans from the IDA had surged by 14.4%, increasing from $14.3 billion in the fiscal year 2023 to $16.5 billion in FY2024 as of June 30.
The IDA, a division of the World Bank, aids nations in tackling poverty and inequality and in achieving advancements in economic growth, job creation, governance, the environment, climate adaptation, mitigation and resilience, human capital, infrastructure, and debt transparency, among other areas.
Managed by 173 shareholders, the IDA combats poverty by providing loans, referred to as credits, and grants for initiatives that promote economic growth, reduce disparities, and enhance people’s quality of life.
These loans, which offer low interest rates and longer repayment terms, aim to drive economic progress, address inequalities, and improve the standard of living in developing regions.
According to the financial statement, the IDA’s total outstanding loans climbed by $10.8 billion, reaching $198.5 billion, up from $187.7 billion the previous year. Additionally, development grant expenses increased to $5.3 billion in FY24, compared to $3.9 billion in FY23, due to the disbursement of more conditional grants as the eligibility criteria for those grants were met.
Globally, Bangladesh continues to top the list as the largest IDA debtor, with its debt rising from $19.3 billion in 2023 to $20.5 billion in 2024.
Pakistan retains second place, with a consistent exposure of $17.9 billion during this period.
As of June 30, 2024, the top ten IDA debtors collectively make up 63% of the IDA’s total exposure.
