By Abubakar Yunusa
Nigeria has retained its position as the third-largest borrower from the International Development Association, with total exposure rising to $18.7bn as of December 31, 2025.
Figures obtained from the latest management discussion and analysis report of the International Development Association showed that the country’s exposure increased from $18.5bn recorded in September 2025.
The IDA, the concessional lending arm of the World Bank Group, provides low-interest loans and grants to low-income countries.
The report ranked Bangladesh as the highest borrower with $23bn exposure, followed by Pakistan at $19.4bn, while Nigeria placed third with $18.7bn.
Ethiopia and Tanzania were tied in fourth position with $14.1bn each. Kenya followed with $13.2bn, while India ranked seventh with $13bn.
Vietnam recorded $11bn to occupy eighth position. Ghana stood at $7.5bn, while Ukraine completed the top 10 list with $6.7bn.
The IDA disclosed that the 10 countries accounted for 60 per cent of its total exposure as of the end of 2025, highlighting a concentration of lending among a few borrowers.
“As of December 31, 2025, IDA had $231.1bn of loans outstanding, of which loans in non-accrual status represent 0.4 per cent,” the report stated.
It added that the accumulated provision for losses on loans and other exposures stood at $6.2bn, representing a provisioning rate of 2.0 per cent of the underlying exposures.
The report further revealed that the Single Borrower Limit for the 2026 financial year was set at $51bn, equivalent to 25 per cent of its $204.2bn equity as of June 30, 2025.
However, the institution noted that the limit was not currently constraining borrowing countries, adding that it continued to monitor exposures based on repayment profiles, disbursement trends and projected new lending.
Meanwhile, Nigeria’s rising exposure comes amid growing concerns over the country’s debt profile.
Data from the Debt Management Office showed that the nation’s public debt rose to N153tn in the third quarter of 2025.
According to the DMO, domestic debt stood at N81.81tn ($55.47bn), while total external debt was N71.47tn ($48.46bn).
The Federal Government accounted for the bulk of the domestic debt, which increased to N77.81tn in Q3 2025 from N76.58tn in Q2.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had recently stated that the country would no longer rely on loans but would instead focus on driving investment and boosting domestic revenue.
He said it was time for Nigeria to strengthen revenue generation and reduce dependence on borrowing.
