AGS NEWS – As of June 30, 2024, Nigeria has become the third-largest debtor to the World Bank’s International Development Association (IDA), following a significant rise in borrowing.

According to a recently released financial statement, Nigeria’s debt to the IDA increased by 14.4%, from $14.3 billion in 2023 to $16.5 billion in 2024.

This marks Nigeria’s first entry into the top three IDA debtors, moving up from fourth place last year.

During the fiscal year from July 2023 to June 2024, Nigeria received at least $2.2 billion in new loans from the IDA under President Bola Tinubu’s administration.

This borrowing is separate from any outstanding loans Nigeria has with the World Bank’s International Bank for Reconstruction and Development (IBRD).

ALSO READ: IMF and World Bank concludes meetings in Morocco

Bangladesh remains the largest IDA debtor with $20.5 billion in exposure, followed by Pakistan with $17.9 billion. India, previously third, saw its debt decrease to $15.9 billion, allowing Nigeria to take its place.

Meanwhile, data from the Central Bank of Nigeria revealed that the Tinubu administration spent $5.39 billion on debt servicing, which accounts for 59% of the $9.1 billion in international payments made between June 2023 and July 2024.

The highest debt servicing payment during this period was $854.36 million in May 2024, raising concerns about the sustainability of Nigeria’s debt burden.