FG Seeks Fresh $1.5bn World Bank Loans as Nigeria’s Debt Rises

The Federal Government has opened discussions with the World Bank for three new loans worth a combined $1.5bn, as Nigeria’s total public debt rose to ₦166.79tn at the end of June 2026.

The proposed financing consists of three separate $500m facilities covering climate resilience, social protection and early childhood development.

The first proposed $500m facility is additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL. The World Bank is expected to consider the financing on October 29, 2026.

If approved, the additional funding would increase the size of the ACReSAL programme from $700m to $1.2bn. The project, implemented through the Federal Ministry of Environment, operates across 19 northern states and the Federal Capital Territory.

The additional funds are expected to support land restoration, erosion and flood management, irrigation, water storage, reforestation and other measures aimed at helping communities cope with climate-related challenges.

Of the proposed $500m additional financing, $310m is expected to go towards dryland management, $165m for community climate resilience, while $25m would support institutional strengthening and project management.

The second proposed $500m facility is for the Household Prosperity and Empowerment-Social Protection Project. The programme is designed to provide regular assistance to poor and vulnerable households and strengthen Nigeria’s social protection system.

Under the programme, funding would support conditional and unconditional cash transfers, improvements to the social register and greater integration of the National Identification Number into the country’s social protection system.

A third $500m facility is being proposed for Nigeria’s Early Childhood Development programme, which would operate across the 36 states and the FCT.

The programme is expected to improve access to healthcare, nutrition, early learning, childcare, water and sanitation services for children between birth and five years of age.

The two latter facilities remain at an earlier stage of preparation, with technical design reviews expected in October 2026 and possible World Bank consideration in March 2027.

The proposed borrowing comes as Nigeria’s public debt increased from ₦152.40tn in June 2025 to ₦166.79tn in June 2026, representing an increase of ₦14.39tn within one year.

Domestic debt accounted for ₦91.59tn of the total debt stock at the end of June, while external obligations stood at ₦75.20tn.

Nigeria’s outstanding obligations to the World Bank Group were also above $20bn at the end of June 2026, making the institution one of the country’s largest external creditors.

The three proposed facilities would be financed through the International Development Association, the World Bank’s concessional financing arm for eligible developing countries.

While discussions and preparations are ongoing, the proposed $1.5bn facilities have not all received final World Bank approval, meaning they should not yet be treated as completed loans.

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