“Nigeria: The World’s 3rd Biggest Borrower – What This Means for Its Future”

Babatunji Wusu –

As of June 30, 2024, Nigeria has ascended to become the third-largest debtor to the World Bank’s International Development Association (IDA), surpassing its previous position as the fourth-largest borrower. According to the World Bank’s recently released financial statement, Nigeria’s IDA loan exposure reached $16.5 billion by the end of June.

The IDA, a crucial arm of the World Bank, offers concessional loans and grants aimed at the world’s poorest countries. These loans, characterized by low interest rates and extended repayment periods, are designed to foster economic growth, reduce inequalities, and enhance living conditions in developing nations. Nigeria’s borrowing from the IDA has increased by $2.2 billion from the $14.3 billion reported at the close of 2023.

The countries ahead of Nigeria in IDA debt are Bangladesh with $20.5 billion, followed by Pakistan with $17.5 billion. India is in fourth place with $15.9 billion, while Ethiopia, Kenya, and Vietnam also feature prominently on the list.