Nigeria’s external debt to the International Development Association (IDA), the concessional lending arm of the World Bank, has risen sharply to $18.7 billion, according to recent data — an increase of about $1.9 billion in the past year. The development underscores the ongoing reliance on soft loans to support development programmes across the country.

The latest figures place Nigeria as the third-largest borrower in the World Bank’s concessional portfolio, highlighting the scale of funding drawn from global partners to address critical needs such as infrastructure, health, education and economic resilience.

Concessional loans from the IDA are designed to support low- and middle-income countries with favourable terms, including low interest rates and extended repayment periods. Nigeria has accessed these funds to help finance projects aimed at poverty reduction, human capital development and economic reforms.

The increase of $1.9 billion over the last year reflects Nigeria’s continued borrowing to fund priority sectors. IDA financing often supports long-term programmes targeted at improving social services, boosting agricultural productivity and addressing infrastructural gaps in transportation and energy.

While concessional financing is generally considered less burdensome than commercial debt, rising totals still raise questions about the sustainability of external obligations, especially in the context of broader debt pressures facing the country.

Nigeria’s position as the third-largest IDA borrower situates it behind only a small number of countries with heavy demand for concessional development finance. This underscores both the country’s size and the scale of its development needs.

Nigeria’s economy has faced a range of pressures in recent years, including fluctuations in oil prices, currency volatility and rising inflation. To stabilise the economy and fund long-term development goals, the government has increasingly tapped into multilateral resources such as the World Bank’s IDA and the International Monetary Fund (IMF).

While some analysts say accessing concessional financing is a strategic way to maintain development momentum without excessive commercial borrowing, others caution that long-term debt levels must be carefully managed. They emphasise the importance of ensuring that borrowed funds are deployed efficiently into projects that generate economic returns and improve living standards.

As Nigeria continues to engage with international partners, the role of IDA funding is likely to remain significant in areas such as education reform, health systems strengthening, rural development, and climate resilience.

Officials within the Ministry of Finance and coordinating economic agencies have yet to publish a detailed response to the latest IDA figures, but previous statements have highlighted the government’s commitment to fiscal discipline and transparent use of development finance.

Nigeria’s growing share of IDA’s portfolio reflects both demand for concessional financing and the scale of socio-economic challenges facing the country. As borrowing increases, careful planning and strong project implementation will be crucial to ensure that external funds translate into sustainable development outcomes.