Nigeria has maintained its position as the third most indebted country to the International Development Association (IDA), with its debt climbing to $17.1 billion as of September 30, 2024. This marks a $600 million increase from $16.5 billion in June 2024, according to the World Bank’s 2024 financial statement.

The report highlights Nigeria’s dependency on concessional loans for infrastructure financing, particularly under the administration of President Bola Tinubu. Between July 2023 and June 2024, Nigeria received an additional $2.2 billion in loans, bringing the total amount borrowed from the IDA during Tinubu’s presidency to $2.8 billion.

Nigeria remains the top African borrower from the IDA, recording a 14.4% increase in debt within a year. In June 2023, the country’s debt stood at $14.3 billion, showcasing its rising dependence on international concessional financing.

Other African nations with significant IDA debts include Ethiopia with $13.1 billion, Kenya at $12.4 billion, and Tanzania with $12.2 billion. Ghana and Uganda, by contrast, are among the least indebted, owing $7 billion and $5 billion, respectively.

Globally, Bangladesh tops the IDA debtors’ list with $21 billion, followed by India at $18.5 billion.

The Tinubu administration has also overseen a substantial increase in Nigeria’s debt servicing obligations. In the first three quarters of 2024, the federal government spent $3.5 billion on external debt servicing, a 37.77% increase from the $2.56 billion spent in the same period in 2023.

Data from the Central Bank of Nigeria shows that debt service payments for the first half of 2024 totaled $1.36 billion, a 216.07% surge compared to $431.23 million in the same period the previous year.

Nigeria’s rising debt coincides with a struggling naira, which has seen steep declines in both official and parallel markets, leading to reduced foreign investor confidence. Despite these challenges, Nigeria’s total debt remains within the IDA’s Single Borrower Limit (SBL) of $47.5 billion for 2025, which accounts for 25% of the association’s exposure.

The Tinubu government continues to rely on concessional loans to fund critical infrastructure projects amid growing fiscal pressures. However, the increasing debt burden raises concerns about long-term sustainability and economic stability.