Nigeria’s debt to the International Development Association (IDA), the concessional arm of the World Bank, has surged to a staggering $17.1 billion as of September 2024, marking an increase of $600 million from the $16.5 billion recorded in June. This rise comes as President Bola Ahmed Tinubu’s administration seeks an additional N3.34 trillion ($2.23 billion) in new loans, further fueling concerns over the country’s mounting debt burden.
The latest approvals from the World Bank include:
- $1.57 billion in September 2024 for improving governance in health and education, strengthening primary healthcare, and enhancing dam safety and irrigation services.
- $2.25 billion in June 2024 under the RESET and ARMOR programs, aimed at stabilizing the economy and boosting revenue generation.
However, the bulk of Nigeria’s World Bank debt—$13.28 billion—was accumulated over the years through various loans for infrastructure, education, power supply, and economic reforms. Since 1958, when Nigeria secured its first World Bank loan of $28 million for railway development, the country has remained a major recipient of concessional financing. By 1966, Nigeria had already acquired $185 million in loans and $35.5 million in IDA credits for transportation, power, and education.
As the nation continues to seek international financial support, questions arise about debt sustainability and the effectiveness of these funds in driving economic recovery. The Tinubu-led government faces the challenge of balancing development needs with fiscal prudence to ensure Nigeria does not spiral further into unsustainable debt.