Nigeria has retained its position as the third-largest borrower from the World Bank’s International Development Association (IDA), even as its exposure shifted slightly in early 2026.
Nigeria IDA Debt Stands at $18.5bn
Nigeria’s International Development Association (IDA) exposure stood at $18.5 billion as of March 31, 2026, according to the World Bank financial statement. However, the figure dropped slightly from $18.7 billion recorded in December 2025.
Meanwhile, the $200 million decline reflects a 1.1 per cent reduction over three months. Despite this, Nigeria remains a major IDA borrower in global ranking.
Furthermore, year-on-year data shows an increase. Nigeria’s exposure rose from $17.3 billion in March 2025 to $18.5 billion in March 2026, marking a $1.2 billion rise.
Nigeria Ranks Behind Bangladesh and Pakistan
However, Nigeria still ranks third among IDA borrowers globally. Bangladesh leads with $22.7 billion, followed by Pakistan with $19.2 billion.
Meanwhile, Ethiopia holds $14.4 billion, Tanzania $14.3 billion, and Kenya $13.2 billion among major African borrowers.
Consequently, Nigeria accounts for about eight per cent of total IDA exposure and roughly 13.3 per cent of the top ten borrower group.
Furthermore, the IDA’s total loans outstanding stood at $230.8 billion as of March 31, 2026. This figure dropped slightly from $231.1 billion in December 2025.
However, the report showed limited stress in the portfolio. Loans under non-accrual status stood at 0.4 per cent, while provisions for potential losses reached $6.3 billion.
Meanwhile, the IDA said its ten largest borrowers account for about 60 per cent of total exposure, showing high concentration among developing economies.
Rising Long-Term Borrowing Trend
However, Nigeria’s borrowing profile continues to rise over time. Exposure increased from $17.3 billion in March 2025 to $18.5 billion in March 2026.
Meanwhile, other countries also recorded increases. Ethiopia rose from $13.2 billion to $14.4 billion, while Tanzania moved from $12.6 billion to $14.3 billion.
Bangladesh increased from $21.2 billion to $22.7 billion. Pakistan moved from $18.3 billion to $19.2 billion. Ghana rose from $7.1 billion to $7.4 billion.
Nigeria Seeks Fresh $1.25bn Loan
Furthermore, Nigeria is currently seeking a fresh $1.25 billion World Bank facility. The facility targets digital services, electricity supply, tax reform, agriculture, and trade support.
However, if approved, it will raise total World Bank loan approvals under President Bola Ahmed Tinubu’s administration to about $10.6 billion since June 2023.
Meanwhile, the proposed loan follows the $1.5 billion Reforms for Economic Stabilisation Development Policy Financing approved in June 2024.
However, experts have raised concerns about Nigeria’s rising debt profile, which stood at about N159 trillion as of 2025.
Furthermore, finance expert Dr. Paul Alaje of SPM Professionals warned that the debt burden will stretch across generations. He said future citizens may also bear repayment pressure as borrowing increases.
Meanwhile, analysts say Nigeria’s growing reliance on concessional loans reflects rising infrastructure and reform financing needs under World Bank support frameworks.
