World Bank: Nigeria’s IDA debt hit $17.1bn in September — up by $600m

Nigeria’s loan exposure from the World Bank’s International Development Association (IDA) rose to $17.1 billion as of September 30.

According to the IDA’s financial statement for September 2024, Nigeria maintained the third spot in the latest top 10 borrowers’ list.

The IDA, a key arm of the World Bank, provides concessional loans and grants to the world’s poorest countries.

These loans, characterised by low interest rates and extended repayment periods, are designed to promote economic growth, reduce inequalities, and improve living conditions in developing nations.

The loans to Nigeria increased by $600 million compared to the $16.5 billion recorded at the end of June 2024.

The top ten countries on the IDA borrowers’ list are India, Bangladesh, Pakistan, Nigeria, Vietnam, Ethiopia, Kenya, Tanzania, Ghana, and Uganda.

Checks by TheCable show that all countries on the list except India, increased their debts.

Ahead of Nigeria on the IDA debt list is Bangladesh, with $21 billion up from $20.5 billion.

Second on the list is Pakistan, with an increased debt of $18.5 billion from $17.5 billion.

India occupies the fourth spot with $15.9 billion, while Ethiopia ($13.1 billion), Kenya (12.4 billion) and Tanzania ($12.2 billion) followed, respectively.

The three countries at the bottom of the list are Vietnam ($12.2 billion), Ghana ($7.0 billion) and Uganda ($5.0 billion).

“As of September 30, 2024, IDA had $209.6 billion of loans outstanding, of which loans in nonaccrual status represent 0.4%,” World Bank said.

“IDA’s accumulated provision for losses on loans and other exposures was $5.8 billion, which represents a provisioning rate of 2.0% of the underlying exposures as of September 30, 2024 ($5.6 billion as of June 30, 2024, 2.0% of the underlying exposure).”

In the second quarter (Q2) of 2024, the Debt Management Office (DMO) said Nigeria’s public debt rose to N134 trillion — up by 10 percent from N121.67 trillion in Q1 2024.

While domestic debt rose to N71.22 trillion ($48.44 million) in June 2024, foreign or external debt stood at N63.07 trillion ($42.90 million).

Also, it was reported that Nigeria’s external debt may reach $45 billion before January 2025.