Nigeria’s debt to the International Development Association (IDA), the concessional lending arm of the World Bank, has surged to $18.7 billion as of December 31, 2025, reflecting a $1.9 billion increase from the previous year. The financial data released by IDA reveals a year-on-year increase of 11.3% from $16.8 billion at the end of 2024. This trend indicates Nigeria's growing dependency on multilateral concessional financing amid a challenging fiscal environment and global market instability.

The recent figures position Nigeria as the third-largest borrower in the IDA portfolio, following Bangladesh and Pakistan, which have borrowings of $23.0 billion and $19.4 billion respectively. The report highlights the significant reliance of these top ten countries, which together make up 60% of the IDA’s total exposure. This is a critical concern as it underscores the increasing pressure on Nigeria’s fiscal policies and its ability to manage external debt in the face of tightening financial conditions.

The growth in Nigeria’s IDA debt raises questions about the country’s economic strategy and long-term sustainability, particularly given the struggles the Federal Government faces in maintaining fiscal discipline and addressing macroeconomic challenges. As Nigeria navigates these complexities, the implications of such debt accumulation could affect future development initiatives and economic stability, warranting close attention from policymakers and stakeholders in the financial landscape.