Nigeria’s IDA Debt Rises to $18.7bn as Concessional Loans Fund Health, Education, Infrastructure

Nigeria’s debt to the World Bank’s concessional lending arm, the International Development Association (IDA), surged to $18.7 billion as of December 31, 2025, reflecting a sharp $1.9 billion increase within a single year, according to the latest financial data from the institution.
The IDA Management’s Discussion and Analysis report for 2025 shows that Nigeria’s exposure to the bank’s concessional loan portfolio climbed from $16.8 billion at the end of 2024, marking an 11.3 per cent year-on-year rise. The increase underscores the Federal Government’s growing reliance on multilateral concessional financing as it navigates a tighter fiscal space amid global economic volatility and fluctuating commodity prices.
Nigeria now ranks as the third-largest borrower in the IDA portfolio, behind Bangladesh ($23.0 billion) and Pakistan ($19.4 billion), among the top ten countries with the highest IDA exposures. Collectively, these ten countries accounted for 60 per cent of the institution’s total lending as of December 31, 2025, slightly down from 61 per cent a year earlier.
The $1.9 billion uptick is largely attributed to continued project disbursements under Nigeria’s Country Partnership Frameworks, with expanded commitments in key sectors including health, education, and infrastructure. These sectors have been identified as priority areas for national development, aiming to strengthen human capital, boost social services, and enhance economic resilience.
Economist Celestine Ukpong noted, “Nigeria’s growing IDA debt reflects both its development ambitions and the structural pressures on its fiscal system. Concessional loans offer critical relief for large-scale projects, but they must be efficiently managed to achieve sustainable outcomes.”
Peter Adebayo, FCA, highlighted the importance of strategic debt planning, stating, “While concessional funding from IDA is cheaper than commercial loans, cumulative exposure increases future debt servicing obligations. Nigeria must ensure that borrowed funds translate into tangible developmental results.”
The rising IDA debt comes as Nigeria seeks to balance fiscal prudence with the urgent need to finance critical developmental projects. Analysts argue that disciplined management and transparent deployment of IDA resources are essential to prevent long-term debt pressures while achieving national development goals.
The report further suggests that continued engagement with multilateral institutions will remain a key pillar of Nigeria’s financing strategy, especially for high-impact projects that support economic growth, social infrastructure, and human capital development.

Nigeria’s debt to the World Bank’s IDA rose $1.9bn in 2025 to $18.7bn, reflecting increased reliance on concessional loans to fund health, education, and infrastructure projects amid fiscal pressures.