Nigeria’s stock of World Bank International Development Association (IDA) loans has risen to $18.5bn, solidifying its position as Africa’s largest IDA borrower and the third-biggest in the world, according to new unaudited financial statements released for the third quarter of 2025.
The data shows that Nigeria’s exposure increased from $17.1bn in September 2024 to $18.5bn in September 2025, an 8.2% rise, reflecting the country’s growing dependence on concessional financing to support infrastructure, reforms, and social programmes amid volatile oil revenue.
Globally, Bangladesh remains IDA’s top borrower with $22.7bn, followed by Pakistan with $19.3bn. Nigeria’s new total places it above Ethiopia, Tanzania, India, Kenya, Vietnam, Ghana and Côte d’Ivoire, completing the top-10 list.
The IDA revealed that the top 10 borrowers alone accounted for 60% of its total exposure as of September 2025.
The World Bank Group reported $228.9bn in loans outstanding, up from $223.2bn in June, driven mainly by fresh disbursements. IDA’s assets stand at $288.6bn, while equity is stable at $204.2bn, with financing now tied to the IDA21 cycle, which provides up to $100bn for global development from July 2025 to June 2028.
Nigeria’s Growing Debt Burden Raises Sustainability Concerns
Despite the favourable terms of IDA loans—low interest and long repayment windows—Nigeria’s rising dependence has intensified concerns over debt sustainability. As of June 30, 2025, Nigeria’s external debt stood at $46.98bn, with the World Bank accounting for 41.3% of that total.
Economist Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, warned that while borrowing itself is not harmful, the critical concern is whether Nigeria earns enough revenue to service its debt. He cautioned that reliance on foreign loans exposes the country to currency depreciation and repayment risks.
Yusuf stressed that borrowing should be tied to clear economic priorities and productive projects capable of boosting Nigeria’s repayment capacity. Otherwise, he warned, the country risks a cycle of borrowing simply to service existing obligations.
He also urged caution in accumulating foreign debt, noting that domestic borrowing though not without challenges poses fewer exchange-rate risks.
Nigeria’s continued presence near the top of the IDA debtor list underscores its large development financing gap, especially in infrastructure, energy access, and poverty reduction, sectors seen as critical for unlocking economic growth.
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