Nigeria’s reliance on concessional funding has propelled its World Bank International Development Association (IDA) loans to $18.5 billion, making it the largest IDA borrower in Africa and the third-largest globally. The country surpassed its 2024 ranking, when it overtook India to secure third place, climbing from fourth in 2023.
The increase, representing an 8.2% rise from $17.1 billion in 2024, reflects Nigeria’s dependence on low-interest financing to bridge infrastructure gaps, support social programs, and maintain economic reforms amid fluctuating oil revenues.
Bangladesh remains the IDA’s top borrower at $22.7 billion, followed by Pakistan with $19.3 billion. Nigeria’s $18.5 billion keeps it ahead of other African nations, including Ethiopia ($14.1bn), Tanzania ($13.8bn), and Kenya ($13bn). The top ten borrowers collectively account for 60% of IDA’s total exposure.
IDA, the World Bank’s concessional lending arm, provides long-term, low-interest or interest-free loans to the world’s poorest nations. While these loans come with favorable terms, Nigeria’s growing debt underscores both the scale of its financing needs and its dependency on external support.
As of June 2025, Nigeria’s total external debt stood at $46.98 billion, with the World Bank Group accounting for $19.39 billion. Analysts caution that continued borrowing should align with clear economic priorities and sustainable repayment plans. Dr. Muda Yusuf, an economist, emphasized that excessive foreign debt could strain Nigeria’s reserves and exchange rate, urging careful project selection to ensure economic returns.
The World Bank’s IDA21 cycle, running from July 2025 to June 2028, will provide up to $100 billion in funding, combining member contributions, capital market financing, and loan repayments, offering Nigeria continued access to concessional loans amid pressing development needs.
This growth in IDA borrowing highlights Nigeria’s position as a major recipient of concessional funding in Africa, even as debt sustainability remains a key concern for policymakers and economists
