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Nigeria Logs Marginal Decline in World Bank Debt Amid Escalating Domestic Debt Strain

"Nigeria’s total public debt for federal and state governments rose to N159.27 trillion at the end of the fourth quarter of 2025, the Debt Management Office (DMO) announced"

Per Second NewsMay 23, 20261 Mins read1.3k

Nigeria’s debt to the World Bank’s concessional arm has edged lower to $18.5 billion as of March 31, 2026, offering a sliver of relief even as the country’s overall public debt keeps climbing sharply.

The $18.5 billion figure reflects a modest $2 million, or 1.7 percent, decline from the $18.7 billion recorded in December 2025, according to the lender’s latest financial report.

Despite the slight reduction, Nigeria still holds the position of third-largest borrower on the IDA’s exposure list.

Bangladesh leads the ranking with $22.7 billion, followed by Pakistan at $19.2 billion.

Ethiopia comes next with $14.4 billion, then Tanzania at $14.3 billion, Kenya with $13.2 billion, and India at $12.4 billion.

Vietnam recorded $10.8 billion, while Ghana and Ukraine stood at $7.4 billion and $6.7 billion respectively.

These exposures are detailed in the IDA’s management discussion and analysis report for the quarter ended March 31, 2026.

The International Development Association, the World Bank’s arm that offers low-interest loans and grants to low-income countries, noted that its top 10 borrowers continue to represent a significant share of its total portfolio.

As of the same date, the IDA had $230.8 billion in loans outstanding, with loans in nonaccrual status accounting for just 0.4 percent.

Its accumulated provision for losses on loans and other exposures stood at $6.3 billion — equivalent to a 2.0 percent provisioning rate — compared to $6.2 billion (also 2.0 percent) as of June 30, 2025.

Separately, Nigeria’s total public debt for federal and state governments rose to N159.27 trillion at the end of the fourth quarter of 2025, the Debt Management Office (DMO) announced on April 15.

The figure marks an increase of N5.98 trillion from the N153.29 trillion recorded at the end of the third quarter.

A few weeks before the DMO’s announcement, President Bola Tinubu had requested the National Assembly approval for $6 billion in new external loans.