In a year marked by economic strain and mounting fiscal pressure, Nigeria spent a staggering $2.32 billion in servicing loans to the World Bank and International Monetary Fund (IMF) in 2024 — a significant increase of 134% compared to the $998.92 million paid in 2023.
This revelation is based on the latest data released by Nigeria’s Debt Management Office (DMO) and underscores the country’s growing debt burden, particularly from multilateral creditors.
Massive Rise in Multilateral Debt Servicing
According to the external debt service report analyzed for the year 2024:
$689.44 million was paid to the World Bank, broken down into:
$663.23 million to the International Development Association (IDA)
$26.21 million to the International Bank for Reconstruction and Development (IBRD)
A substantial $1.63 billion was paid to the IMF, entirely as principal repayments, with no interest charges recorded.
In contrast, 2023 figures showed payments of:
$597.19 million to the World Bank
$401.73 million to the IMF
The 2024 payments represent nearly half (49.8%) of Nigeria’s total external debt servicing bill of $4.66 billion, up from $3.5 billion in 2023.
Multilateral creditors accounted for the largest chunk of Nigeria’s debt servicing in 2024, receiving $2.62 billion (56% of total). The IMF alone accounted for 35% of the country’s total external debt service and 62% of payments to all multilateral lenders.
Other breakdowns include:
Commercial creditors: $1.47 billion (down from $1.93 billion in 2023)
Bilateral creditors: $570.67 million (up from $344.57 million)
Despite a drop in commercial loan repayments, the spike in multilateral debt servicing — especially to the IMF — intensified Nigeria’s overall debt strain.
The IDA, a World Bank arm offering concessional loans, emerged as Nigeria’s single largest multilateral creditor in 2024, with Nigeria repaying:
$414.86 million in principal
$248.10 million in interest
Payments to IBRD also rose slightly, driven by growing interest obligations.
Soaring Debt, Fragile Revenue Base
The surge in debt servicing coincides with a weak revenue performance and a fragile exchange rate environment, placing added pressure on the naira and public finances.
According to DMO records:
Nigeria’s total external debt stock reached $45.78 billion as of December 2024 — up from $42.50 billion in 2023.
World Bank loans accounted for $17.81 billion of this debt, up from $15.45 billion the previous year.
IDA: $16.56 billion
IBRD: $1.24 billion
This reflects a 15.3% year-on-year increase in debt to the World Bank alone, outpacing the overall multilateral debt stock growth of 5.5%.
In contrast, Nigeria’s debt to the IMF dropped sharply from $2.47 billion in 2023 to $800.23 million in 2024 — a decline of 67.6%. The decline is attributed to repayments of emergency funding received during COVID-19 and budget support loans.
Share of Debt and Shifting Dynamics
In terms of composition:
World Bank loans made up 79.8% of Nigeria’s multilateral debt in 2024 (up from 73.1% in 2023)
IMF’s share of multilateral debt fell from 11.7% to 3.6%
Combined, the World Bank and IMF accounted for $18.61 billion, or 83.4% of Nigeria’s multilateral debt
Their share of the total external debt was 40.6% in 2024 (down slightly from 41% in 2023 due to a higher overall debt stock)
Despite the rising cost of debt servicing, Nigeria’s government insists it is recalibrating its borrowing strategy.
Speaking at the Corporate Governance Forum organized by the Ministry of Finance Incorporated (MOFI), the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the government is gradually shifting from excessive reliance on debt to focusing more on equity investments, revenue growth, and public-private partnerships (PPPs).
Edun emphasized the need to optimize state-owned enterprises through capital injection and private sector collaboration rather than accumulating more debt.
The exponential increase in Nigeria’s debt servicing obligations to the World Bank and IMF highlights a deepening fiscal vulnerability and rising dependency on concessional loans. While these facilities offer lower interest and longer repayment terms, the sheer volume of repayments is placing an undeniable strain on Nigeria’s public finances.
As the federal government looks to reduce its debt appetite in favor of revenue-generating strategies, observers await the practical implementation of these reforms amid persistent borrowing trends and ambitious national spending plans.