Nigeria’s debt to the International Development Association (IDA), the World Bank’s concessional lending arm, has surged to $18.7 billion, according to the latest financial data released on Thursday, February 19, 2026.
This figure represents an 11.3 percent year-on-year increase from the $16.8 billion recorded at the end of 2024. The sharp rise highlights the Federal Government’s growing reliance on low-interest multilateral financing to fund critical development projects in health, education, and infrastructure as domestic revenue remains tight.
With this latest increase, Nigeria has solidified its position as the third-largest borrower in the IDA portfolio globally, trailing only Bangladesh ($23.0 billion) and Pakistan ($19.4 billion). The IDA is preferred by emerging economies because it offers highly favorable terms, including long repayment periods and near-zero interest rates.
However, financial analysts warn that the steady accumulation of these obligations is significantly altering Nigeria’s external debt profile, with the World Bank Group now holding over 41 percent of the nation’s total foreign debt.
The Federal Government has defended the borrowing push, stating that the funds are targeted at inclusive growth rather than consumption. Recent disbursements have been tied to large-scale initiatives such as the Nigeria for Women Programme and the Distributed Access through Renewable Energy Scale-up (DARES) project.
While these loans are cheaper than commercial Eurobonds, experts caution that the rising volume of foreign-currency debt increases the country’s vulnerability to exchange-rate shocks. As the government navigates a challenging 2026 fiscal year, the focus remains on ensuring that these borrowed funds generate enough economic activity to sustain future repayments without straining national reserves.
, the World Bank’s concessional lending arm, has surged to $18.7 billion, according to the latest financial data released on Thursday, February 19, 2026.){kind=link}