Nigeria’s IDA Debt Reaches $17.1bn In September

Nigeria’s debt exposure to the International Development Association (IDA), a branch of the World Bank, reached $17.1 billion as of September 30, 2024, reflecting a $600 million increase from the $16.5 billion recorded at the end of June.
According to IDA’s September 2024 financial statement, Nigeria remains the third-largest borrower on the association’s top 10 borrowers’ list. The IDA provides concessional loans and grants to some of the world’s poorest countries, offering low interest rates and extended repayment terms to foster economic development, reduce inequalities, and improve living standards.
Bangladesh, holding the second position, saw its debt rise to $21 billion from $20.5 billion. Pakistan follows with $18.5 billion, up from $17.5 billion. Nigeria maintains the third spot, while India ranks fourth with $15.9 billion. Other countries on the list include Ethiopia ($13.1 billion), Kenya ($12.4 billion), Tanzania ($12.2 billion), Vietnam ($12.2 billion), Ghana ($7 billion), and Uganda ($5 billion).
As of September 30, 2024, the IDA reported $209.6 billion in outstanding loans, with loans in nonaccrual status accounting for 0.4 percent. The accumulated provision for losses on loans and other exposures stood at $5.8 billion, representing a provisioning rate of 2 per cent of underlying exposures, a slight increase from $5.6 billion in June 2024.
Meanwhile, Nigeria’s overall public debt continues to rise. The Debt Management Office (DMO) reported that the country’s public debt had increased to ₦134 trillion by the second quarter of 2024, a 10 per cent growth from ₦121.67 trillion in the first quarter. Domestic debt reached ₦71.22 trillion ($48.44 billion) as of June 2024, while external debt stood at ₦63.07 trillion ($42.90 billion). Projections suggest that Nigeria’s external debt could climb to $45 billion by January 2025.