Nigeria has been ranked as the largest debtor in Africa and the third-largest globally to the World Bank’s International Development Association (IDA), according to the Bank’s financial statement.
As of June 30, 2024, Nigeria’s borrowing from the IDA increased significantly by 14.4%, rising from $14.3 billion in the fiscal year 2023 to $16.5 billion in FY2024.
The IDA is a part of the World Bank that helps countries reduce poverty and inequality and achieve improvements in economic growth, job creation, governance, the environment, climate adaptation, mitigation and resilience, human capital, infrastructure, and debt transparency, among others.
Overseen by 173 shareholder nations, the IDA aims to reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
These loans, which come with low interest rates and extended repayment terms, aim to stimulate economic development, address inequalities, and enhance living standards in developing regions.
According to the financial statement, the IDA’s total outstanding loans jumped by $10.8 billion, bringing the total to $198.5 billion, up from $187.7 billion the previous year. Additionally, development grant expenses climbed to $5.3 billion in FY24, compared to $3.9 billion in FY23, due to more conditional grants being paid out as the requirements for those grants were met.
Below are the African countries with the highest debt to the World Bank’s IDA:
| Rank | Country | Outstanding debt in billions of US Dollars |
|---|---|---|
| 1 | Nigeria | 16.5 |
| 2 | Ethiopia | 12.2 |
| 3 | Kenya | 12.0 |
| 4 | Tanzania | 11.7 |
| 5 | Ghana | 6.7 |
| 6 | Uganda | 4.8 |
Bangladesh continues to hold the top spot as the largest IDA debtor, with its debt rising from $19.3 billion in 2023 to $20.5 billion in 2024. Pakistan remains in second place, maintaining a steady exposure of $17.9 billion during this period.
Story Source: Africa Business Insider
