The Digest:
Nigeria's debt to the World Bank's concessional lending arm, the International Development Association (IDA), has risen to $18.7 billion as of December 31, 2025, making the country the third-largest borrower in the IDA portfolio. World Bank data show that Nigeria trails only Bangladesh ($23.0 billion) and Pakistan ($19.4 billion) among the top borrowers. The outstanding obligations increased by $1.9 billion within one year, rising 11.3% from $16.8 billion at the end of 2024. Nigeria and other top borrowing countries collectively account for 60% of IDA's total exposure. While IDA loans are highly concessional with low interest rates and long repayment tenures, analysts note that the growing debt stock adds to Nigeria's external obligations, reflecting rising fiscal pressure amid infrastructure and development financing needs. IDA stressed the need for careful monitoring of exposure levels relative to repayment and future lending profiles.
Key Points:
- The rising debt burden increases future repayment obligations and fiscal pressure.
- It reflects Nigeria's continued reliance on concessional financing for development projects.
- Citizens bear long-term repayment responsibility, while current projects receive funding.
- This signals the country's limited access to cheaper domestic financing options.
- The timing, with 11.3% annual growth, shows accelerating dependence.
Nigeria's IDA debt hits $18.7bn, ranking third globally, up 11.3% in one year amid growing reliance on concessional external financing.
Sources: Nigerian Tribune, World Bank
