Country’s IDA exposure falls by $200m in Q1 2026 but rises sharply year-on-year as reliance on concessional loans continues…..
Nigeria has retained its position as the third-largest borrower from the International Development Association (IDA), the World Bank’s concessional lending arm, despite recording a slight decline in debt exposure during the first quarter of 2026.
According to the IDA’s latest financial statements for March 2026, Nigeria’s total exposure stood at $18.5 billion as of March 31, 2026, compared to $18.7 billion recorded at the end of December 2025.
The figures represent a quarter-on-quarter decline of $200 million, or 1.1 per cent, suggesting a modest easing in the country’s short-term debt profile.
However, on a year-on-year basis, Nigeria’s debt exposure to the World Bank increased significantly by $1.2 billion, rising from $17.3 billion in March 2025 to $18.5 billion in March 2026.
The increase highlights Nigeria’s continued dependence on concessional financing to support economic reforms, infrastructure development, and public sector programmes.
Despite the marginal quarterly drop, Nigeria maintained its ranking as the IDA’s third-largest borrower globally, behind only Bangladesh and Pakistan.
The report showed that Bangladesh remains the World Bank’s largest IDA borrower with an exposure of $22.7 billion, while Pakistan follows with $19.2 billion.
Nigeria ranked third with $18.5 billion, ahead of Ethiopia at $14.4 billion, Tanzania at $14.3 billion, and Kenya at $13.2 billion.
The IDA disclosed that total outstanding loans across its global portfolio stood at $230.8 billion as of March 31, 2026, slightly lower than the $231.1 billion recorded at the end of December 2025.
According to the institution, loans classified under non-accrual status represented just 0.4 per cent of the total portfolio, while provisions for potential loan losses stood at $6.3 billion.
Nigeria’s debt exposure alone accounted for approximately eight per cent of the IDA’s total loan portfolio and about 13.3 per cent of the combined exposure represented by the institution’s ten largest borrowing countries.
The World Bank noted that the top ten borrowing nations collectively accounted for 60 per cent of the IDA’s total exposure, underlining the concentration of concessional lending among a relatively small group of developing economies.
Among African countries, Ethiopia and Tanzania also recorded notable increases in their IDA exposures over the past year.
Ethiopia’s debt exposure rose from $13.2 billion in March 2025 to $14.4 billion in March 2026, while Tanzania’s increased from $12.6 billion to $14.3 billion during the same period.
Ghana also saw its exposure rise from $7.1 billion to $7.4 billion.
The latest figures come as the Federal Government continues discussions with the World Bank over a fresh $1.25 billion loan package aimed at expanding access to finance, electricity, digital services, and supporting reforms in agriculture, taxation, and trade.
If approved, the proposed facility would push total World Bank loan approvals secured under President Bola Ahmed Tinubu’s administration to about $10.6 billion since June 2023.
The new package would also become the second-largest World Bank loan approved for Nigeria under the current administration, behind the $1.5 billion economic stabilisation financing approved in June 2024.
Meanwhile, the Accountant-General of the Federation, Shamseldeen Babatunde Ogunjimi, recently expressed concerns over delays in the World Bank’s approval and disbursement processes.
He warned that Nigeria could reconsider some loan arrangements if prolonged delays continue to affect the timely release of funds needed for critical development projects.
According to Ogunjimi, Nigeria remains a responsible borrower and deserves faster processing of financing requests tied to the country’s economic and development priorities.
