The Federal Government is seeking three new World Bank loans totalling $1.5bn as Nigeria’s public debt rose to N166.79tn at the end of June 2026.
World Bank documents show that the proposed financing consists of three $500m facilities for climate resilience, social protection and early childhood development. The loans are expected to be financed through the International Development Association, the bank’s concessional lending arm.
The first facility is a $500m additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL. If approved, it would increase the project’s total financing from $700m to $1.2bn.
The proposed additional funding will support landscape restoration, watershed rehabilitation, erosion and flood control, irrigation, water harvesting, reforestation and other climate-resilience measures across 19 northern states and the Federal Capital Territory. The World Bank has tentatively scheduled October 29, 2026, for consideration of the facility by its board.
Another $500m is proposed for the Household Prosperity and Empowerment Social Protection Project, or HOPE-SP. The programme is designed to expand social assistance for poor and vulnerable households through cash transfers, an improved social registry and stronger social protection systems.
The third facility, also worth $500m, is for a Nigeria Early Childhood Development programme. It is expected to support health, nutrition, childcare, early learning, water and sanitation services for children aged zero to five across the 36 states and the FCT.
The proposed borrowing comes as Nigeria’s public debt continues to rise. The Debt Management Office said total public debt increased from N152.40tn in June 2025 to N166.79tn in June 2026, representing a 9.44 per cent year-on-year increase. The debt also rose from N159.35tn in March to N166.79tn in June.
External debt stood at $54.52bn at the end of June, while domestic debt remained the larger component of the overall portfolio.
Nigeria’s World Bank debt also increased to $20.73bn in June 2026, comprising $19.12bn owed to IDA and $1.61bn to the International Bank for Reconstruction and Development. The World Bank exposure represented about 38 per cent of Nigeria’s $54.52bn external debt stock.
The proposed facilities are still at different stages of preparation and are not yet approved loans. The HOPE-SP and early childhood development projects are expected to undergo further technical reviews before their proposed 2027 board consideration dates.
The World Bank has already approved several major financing packages for Nigeria in 2026, including $500m for the Sustainable Agricultural Value-Chains for Growth project and $1.25bn for the Nigeria Actions for Investment and Jobs Acceleration programme.
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