Nigeria remains World Bank’s third-largest borrower with $18.5bn

Precious Omolu 12:59 - 25 May 2026

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Nigeria maintains its position as the third-largest borrower from the World Bank’s IDA, with debt exposure reaching $18.5 billion as of March 2026.

Nigeria remains the World Bank’s third-largest borrower with $18.5bn debt exposure as fresh data shows the country’s reliance on concessional loans continues to rise amid economic reforms and infrastructure funding needs.

Nigeria’s debt exposure to the World Bank rose to $18.5 billion, making it the third-largest borrower after Bangladesh and Pakistan.
The Federal Government is seeking another $1.25 billion World Bank loan to support power, agriculture, trade and digital reforms.
Financial experts are warning that Nigeria’s growing debt burden could increase pressure on future generations and the economy.

Nigeria has remained the third-largest borrower from the World Bank’s International Development Association (IDA), with the country’s debt exposure now standing at $18.5 billion as of March 31, 2026.

Fresh figures contained in the IDA’s March 2026 financial statements showed that Nigeria’s exposure dropped slightly from the $18.7 billion recorded in December 2025, representing a decline of about $200 million within three months.

Even with the slight quarterly drop, Nigeria’s debt to the World Bank has continued to rise on a yearly basis. The latest figure is about $1.2 billion higher than the $17.3 billion exposure recorded in March 2025, showing a 6.9 per cent increase over one year.

The new ranking places Nigeria behind Bangladesh and Pakistan among countries with the highest borrowing from the World Bank’s concessional lending arm.

According to the report, Bangladesh remained the largest borrower with $22.7 billion exposure, while Pakistan followed with $19.2 billion. Nigeria came third with $18.5 billion.

Mohammed Shahabuddin, President of Bangladesh

Among African countries, Ethiopia recorded $14.4 billion exposure, Tanzania had $14.3 billion, while Kenya stood at $13.2 billion.

The IDA also disclosed that its total outstanding loan portfolio stood at $230.8 billion as of March 2026, slightly lower than the $231.1 billion reported in December 2025.

Nigeria alone accounts for around eight per cent of the institution’s total loan portfolio and roughly 13.3 per cent of the combined exposure of the IDA’s ten largest borrowers.

The report further showed that the ten largest borrowing countries make up about 60 per cent of the World Bank’s concessional lending exposure globally.

Nigeria’s rising exposure highlights the country’s growing dependence on multilateral financing to support infrastructure projects, social programmes, economic reforms and budget support amid ongoing fiscal pressures.

The Federal Government is also in talks with the World Bank for another fresh loan facility valued at $1.25 billion.

The Federal Government is currently negotiating a fresh $1.25 billion facility to bolster electricity supply, digital expansion, and agricultural reforms across the country.

The proposed funding is expected to support areas including electricity supply improvement, digital infrastructure expansion, agriculture, trade reforms, tax administration and access to finance.

If approved, total World Bank loan approvals secured by Nigeria since President Bola Ahmed Tinubu assumed office in May 2023 could rise to around $10.6 billion.

The planned facility would rank among the biggest World Bank loans approved for Nigeria in recent years, coming after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.

Meanwhile, financial experts have continued to raise concerns over Nigeria’s growing debt burden.

Nigeria’s total public debt had earlier risen to about ₦159 trillion by 2025, according to figures from the Debt Management Office.

A finance expert and senior partner at SPM Professionals, Dr. Paul Alaje, warned that the increasing debt stock would place heavier repayment obligations on 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. So by the time we look at the one that we have retired and the new loans that have been approved and some that have been collected this year, 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.

Analysts say while concessional loans from the World Bank usually come with lower interest rates and longer repayment periods compared to commercial loans, Nigeria’s rising debt profile may continue to increase pressure on government revenue and debt servicing obligations in the coming years.