Nigeria has maintained its position as the third-largest borrower from the International Development Association (IDA), the concessional lending arm of the World Bank, even as its debt exposure recorded a marginal decline in early 2026.
According to the IDA’s March 2026 financial statements, Nigeria’s exposure stood at $18.5 billion as of March 31, 2026, a slight drop from $18.7 billion recorded in December 2025. The $200 million reduction represents a 1.1 per cent quarterly decline, suggesting a modest easing in borrowing levels over the three-month period.
However, the broader trend still points upward. On a year-on-year basis, Nigeria’s exposure rose significantly from $17.3 billion in March 2025 to $18.5 billion in March 2026, marking an increase of $1.2 billion or 6.9 per cent.
Nigeria ranks behind Bangladesh and Pakistan
The latest ranking places Nigeria behind Bangladesh and Pakistan among IDA borrowers globally.
- Bangladesh — $22.7 billion (largest borrower)
- Pakistan — $19.2 billion
- Nigeria — $18.5 billion
Other major African economies also featured prominently in the report, including Ethiopia, Tanzania, and Kenya, reflecting widespread reliance on concessional financing across the continent.
Global lending portfolio shows slight contraction
The IDA reported that its total loans outstanding stood at $230.8 billion, slightly lower than the $231.1 billion recorded at the end of December 2025, indicating a mild contraction in its overall lending exposure.
The institution also noted that loans under non-accrual status accounted for just 0.4 per cent of the portfolio, while provisions for potential losses stood at $6.3 billion, representing about 2 per cent of total exposures.
Nigeria alone accounts for roughly 8 per cent of the IDA’s total loan portfolio, and about 13.3 per cent of the combined exposure of its top ten borrowing countries, which together make up around 60 per cent of global IDA lending exposure.
Rising long-term reliance despite quarterly dip
While the short-term figures show a slight reduction, Nigeria’s long-term borrowing trend continues to rise. The country’s exposure has steadily increased from $17.3 billion in March 2025 to $18.5 billion in March 2026, reflecting sustained reliance on concessional funding to support infrastructure development, social programmes, and economic reforms.
Similar upward trends were recorded in other major borrowers, including Ethiopia, Tanzania, Bangladesh, Pakistan, and Ghana, underscoring a broader pattern of rising dependence on IDA financing among developing economies.
Fresh borrowing plans under consideration
Nigeria is also seeking additional support from the World Bank, with a proposed $1.25 billion facility currently under discussion. The financing package is expected to target improvements in digital services, electricity supply, tax administration, agriculture, trade, and access to finance.
If approved, the facility would further expand Nigeria’s World Bank borrowing under the current administration, adding to previously secured development financing packages.
Concerns over rising debt burden
Despite the concessional nature of IDA loans, analysts continue to express concern over Nigeria’s growing debt stock. The country’s total debt profile has reportedly climbed to ₦159 trillion as of 2025, prompting renewed debate over sustainability.
Speaking on the issue, finance expert Dr. Paul Alaje warned that the burden ultimately falls on citizens, including future generations.
“So here is the point, as the volume increases, Nigeria has to pay more, mind you the debt they gave to us is not this year, but as of December 31 2025… it is clear that by the time the DMO is reporting that in the first quarter 2026, we would have crossed $160 billion. So it’s more of a burden on the economy. Whether we have the capacity to pay or not is a different kettle of fish,” he added.
As Nigeria continues to balance development financing with debt sustainability concerns, the country’s position among the world’s top IDA borrowers highlights both its infrastructure needs and the financial pressures shaping its economic trajectory.