Nigeria Becomes Third Largest Debtor to World Bank’s IDA, Raises Questions on Loan Utilization

Nigeria has emerged as the third-largest debtor to the World Bank’s International Development Association (IDA), with its debt exposure rising by 14.4% from $14.3 billion in FY2023 to $16.5 billion in FY2024. This $2.2 billion increase has pushed Nigeria into the top three IDA lenders for the first time, surpassing India, which saw its exposure decrease from $17.9 billion to $15.9 billion during the same period.

 However, this significant borrowing has sparked concerns among Nigerians about how these funds are being utilized, as there seems to be little to no visible improvement in critical areas such as infrastructure, education, and the ongoing fuel crisis. 

 In spite of the substantial loans secured by the government under President Bola Tinubu’s administration, citizens have yet to see any meaningful advancement in public services or the quality of life. 

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The government’s lack of transparency regarding the allocation of these funds has led to increased public scrutiny and demands for accountability.

 With Nigeria now holding a debt of $16.5 billion from the IDA, many are calling for a detailed explanation from the government on how these borrowed funds are being used. 

 The persistent issues in infrastructure, education, and energy raise questions about whether these loans are being effectively managed to benefit the country or if they serve the interests of a select few in power. 

 As Nigeria’s debt continues to grow, the need for transparency and responsible governance becomes more critical than ever.