ABUJA, Nigeria — Nigeria has been named the third largest debtor to the World Bank’s International Development Association (IDA) with an outstanding debt of $16.5 billion as of June 30, 2024, according to a financial statement released by the World Bank.
The financial statement shows that Nigeria’s exposure to the IDA, which offers concessional loans and grants to the world’s poorest countries, increased by $2.2 billion—or 14.4%—from $14.3 billion at the end of 2023.
The IDA’s loans are designed to promote economic growth, reduce inequalities, and improve living conditions in developing countries, featuring low-interest rates and extended repayment periods.
At the top of the IDA debt list is Bangladesh, owing $20.5 billion, followed by Pakistan with $17.5 billion.
Nigeria’s new position pushed India to fourth place with a debt of $15.9 billion, down from $17.9 billion in 2023. Ethiopia, Kenya, and Vietnam follow with debts of $12.2 billion, $12.0 billion, and $12.0 billion, respectively.
“As of June 30, 2024, the ten countries with the highest exposures accounted for 63% of IDA’s total exposure. Monitoring these exposures relative to the SBL requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees,” the World Bank said.
The countries with the lowest debt to the IDA are Tanzania, with $11.7 billion, Ghana with $6.7 billion, and Uganda with $4.8 billion.
This growing debt exposure comes amid a broader increase in Nigeria’s total public debt, which the Debt Management Office (DMO) reported had risen to N121.67 trillion in the first quarter of 2024, compared to N97 trillion in December 2023.
The DMO attributed the surge to new domestic borrowing by the federal government to partially fund the 2024 budget deficit, along with disbursements by multilateral and bilateral lenders. Of the total debt, N65.65 trillion ($46.29 billion) is domestic, while N56.02 trillion ($42.12 billion) is external.
As Nigeria battle with its increasing debt burden, labor leaders have called for vigilance and accountability.
“You must not allow this process to be turned into a tool to deprive and cheat already suffering workers from the benefits that may accrue to them,” said a labor leader during a recent workshop. “Congress will severely sanction any state council that colludes with employers, whether public or private, to cheat workers out of their benefits.”
Labor leaders have urged for unity and preparation as they approach new negotiations. “We must remain vigilant, informed, and united,” the labor leader added. “This workshop is an essential step in that process—a space for us to discuss strategies, share knowledge, and build networks.”
The call for action comes as Nigeria faces economic challenges that impact both its debt management and labor negotiations.