By Adesola Alebiosu, JKNewsMedia Intern
THIRD LARGEST borrower position from the International Development Association (IDA), the concessional lending arm of the World Bank (WB), has been retained by Nigeria despite a slight decline in its debt exposure in first quarter 2026.
JKNewsMedia.com reports that according to IDA March 2026 financial statements, Nigeria’s exposure stood at $18.5 billion as of March 31, 2026, down from $18.7 billion recorded at the end of December 2025.
It also notes that the $200 million decline represents a 1.1 percent reduction over the three-month period, adding that, on a year-on-year basis, Nigeria’s debt exposure rose by $1.2 billion or 6.9 percent from $17.3 billion recorded in March 2025.
Data from the report showed Bangladesh remained the largest borrower with $22.7 billion, followed by Pakistan with $19.2 billion, while Nigeria ranked third with $18.5 billion.
Other African borrowers include Ethiopia with $14.4 billion, Tanzania with $14.3 billion, and Kenya with $13.2 billion in outstanding exposure.
IDA report also showed that total loans outstanding stood at $230.8 billion as of March 31, 2026, down from $231.1 billion recorded at the end of December 2025.
Loans classified under non-accrual status represented 0.4 percent of the total portfolio, while provisions for potential loan losses amounted to $6.3 billion, equivalent to about 2.0 percent of underlying exposures.
IDA also says Nigeria’s exposure accounted for roughly eight percent of the total loan portfolio and approximately 13.3 percent of the combined exposure of the institution’s ten largest borrowing countries.
Its report noted that the ten largest country exposures collectively accounted for about 60 percent of total portfolio exposure as of March 2026.
It also adds that Nigeria’s exposure rose from $17.3 billion in March 2025 to $18.5 billion in March 2026.
Ethiopia rose from $13.2 billion to $14.4 billion.
Tanzania increased from $12.6 billion to $14.3 billion.
Bangladesh increased from $21.2 billion to $22.7 billion.
Pakistan rose from $18.3 billion to $19.2 billion.
Ghana increased from $7.1 billion to $7.4 billion.
As things stand, Nigeria’s Federal Government is said to be engaging the WB for additional financing support.
The country is seeking a fresh $1.25 billion WB facility aimed at expanding access to finance, improving digital services, strengthening electricity supply, and supporting reforms in tax administration, agriculture, and trade.
If approved, the proposed facility would raise Nigeria’s total WB loan approvals secured under the current administration of President Bola Tinubu to about $10.6 billion since June 2023.
Also, the proposed loan would follow the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Experts had cautioned Nigeria against rising multilateral loans amid rising debt with Nigeria’s debt profile rising to N159 trillion as of 2025, as reported by the Daily Trust.
Finance expert and senior partner at SPM Professionals, Dr Paul Alaje, told the publication:
“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 first quarter 2026, we would have crossed $160 billion. So, it is more of a burden on the economy. Whether we have the capacity to pay or not is a different kettle of fish,” he added.
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