Nigeria has retained its position as the third-largest debtor to the World Bank’s International Development Association, with outstanding obligations of $18.2 billion as of June 30, 2025.

This marked a rise from $16.5 billion in June 2024, representing a $1.7 billion, approximately 10.3 per cent increase within one year.

The latest figures from the IDA’s financial statements showed that Nigeria first climbed to third place in 2024, up from its previous position as the fourth-largest borrower in 2023, and has maintained this ranking into 2025.

The IDA is the concessional lending arm of the World Bank Group, offering low-interest or interest-free loans and grants to the world’s poorest countries. Debt owed to the IDA typically comes with long maturities and generous grace periods, but the growing balances highlight both the scale of Nigeria’s financing needs and the degree of its reliance on concessional funding.

It is imperative to note that during the fiscal year from July 2023 to June 2024, Nigeria received at least $2.2 billion in new loans from the IDA. This means that a total of $3.9 billion IDA loans have been disbursed to Nigeria in two years, between June 2023 and June 2025, under the administration of President Bola Tinubu.

This borrowing does not include any outstanding loans from the World Bank’s International Bank for Reconstruction and Development, which is separate from the IDA.

Bangladesh remains the largest IDA borrower globally, with its debt stock increasing from $20.5 billion in June 2024 to $22.6 billion in June 2025. The South Asian country continues to dominate the exposure table, accounting for the largest single share of the IDA’s loan portfolio.

Pakistan follows as the second-largest borrower, with its debt rising from $17.9bn to $19.3 billion over the same period. India, which in prior years ranked ahead of Nigeria, remains a significant IDA borrower despite a decline in its exposure.

Its outstanding debt fell sharply from $15.9 billion in June 2024 to $14.2 billion in June 2025, a drop of $1.7bn, largely due to repayments outpacing new disbursements.

Ethiopia rounds out the top five, with its debt stock rising from $12.2 billion to $14.0 billion in the 12-month period. The other countries in the 2025 top ten list reflect shifts in the IDA’s lending profile.

Tanzania’s debt surged from $11.7bn to $13.7bn, moving it ahead of Kenya, which also saw a significant increase from $12.0bn to $13.0bn. Vietnam’s exposure fell from $12.0bn to $11.6bn, causing it to drop in the rankings, while Ghana’s debt climbed from $6.7bn to $7.2bn.

Côte d’Ivoire entered the top ten in 2025 with $6.2bn, displacing Uganda, whose debt stood at $4.8bn in 2024. Overall, the IDA’s top ten borrowers accounted for 61 per cent of its total exposure in 2025, down slightly from 63 per cent in 2024.

This concentration shows the relevance of the Single Borrower Limit, which caps lending to any single country at 25 per cent of the IDA’s equity. For the 2026 fiscal year, the SBL was set at $51.0bn—up from $47.5bn in FY25—well above the current exposure levels of the largest borrowers, meaning the limit is not presently a binding constraint.

Nigeria’s continued ranking at the top bracket of global borrowing amid persistent infrastructure decay, poverty, and general economic headwinds, have been viewed by some and analysts experts as worrisome, while others see it as a reflection of its persistent financing gap for development spending, particularly in infrastructure, energy access, and poverty reduction programmes.