Nigeria’s financial exposure to the International Development Association (IDA), a lending arm of the World Bank that provides concessional loans to developing countries, recorded a slight decline in the first quarter of 2026, even though long-term borrowing trends continue to rise.
According to the IDA’s March 2026 financial statements, Nigeria’s outstanding exposure stood at $18.5 billion as of March 31, 2026. This marks a small drop from $18.7 billion recorded in December 2025, representing a reduction of about $200 million or 1.1 percent over a three-month period.
While the short-term movement shows a minor improvement, the broader picture indicates an upward trajectory in Nigeria’s debt profile. Compared to the same period in 2025, when exposure stood at $17.3 billion, Nigeria’s borrowing from the IDA increased by $1.2 billion or 6.9 percent within one year.
This places Nigeria among the top borrowers from the World Bank’s concessional lending window. In the latest ranking, Bangladesh remains the largest borrower with $22.7 billion,followed by Pakistan with $19.2 billion, while Nigeria ranks third with $18.5 billion.
Other African countries also feature prominently on the list. Ethiopia owes $14.4 billion, Tanzania has $14.3 billion, and Kenya carries $13.2 billion in IDA exposure, highlighting the growing reliance on concessional financing across developing economies.
The IDA’s total global loan portfolio stood at $230.8 billion as of March 2026, slightly lower than the $231.1 billion recorded in December 2025, suggesting a mild slowdown in overall lending activity. The institution also reported that only 0.4 percent of its loans were under non-accrual status, while it set aside $6.3 billion (about 2 percent of total exposure)as provisions for potential loan losses.
Nigeria alone accounts for roughly 8 percent of the IDA’s total loan portfolio and about 13.3 percent of the combined exposure of its ten largest borrowing countries. Collectively, the top ten borrowers make up around 60 percent of all outstanding IDA loans, showing how concentrated global concessional lending is among a small group of developing nations.
Despite the slight quarterly decline, Nigeria’s long-term debt trend continues to rise steadily. Similar increases were recorded in other countries over the past year, including Ethiopia, Tanzania, Bangladesh, Pakistan, and Ghana, reflecting widespread dependence on multilateral financing for development needs.
Nigeria’s growing exposure is linked to its ongoing infrastructure demands, social investment programmes, and economic reform financing under the World Bank framework. The Federal Government is also seeking additional support, including a proposed $1.25 billion World Bank facility aimed at expanding access to finance, improving digital services, strengthening electricity supply, and supporting reforms in taxation, agriculture, and trade.
If approved, the new facility would contribute to Nigeria’s rising World Bank commitments, which have accumulated significantly in recent years under ongoing reform programmes. However, concerns remain over the country’s increasing debt burden.
Experts warn that Nigeria’s overall debt stock, which has climbed sharply in recent years, could place long-term pressure on public finances. Some analysts argue that rising multilateral loans may deepen repayment obligations for future generations if not carefully managed.
Overall, while Nigeria’s IDA exposure saw a minor quarterly dip, the broader trend continues to reflect growing reliance on external concessional borrowing to support economic development and reform efforts.
