The Federal Government has opened discussions with the World Bank for three proposed loans totalling $1.5bn, even as Nigeria’s public debt rose to a record N166.79tn at the end of June 2026.
The proposed facilities, each valued at $500m, are expected to finance programmes covering climate resilience, social protection and early childhood development.
Three $500m Facilities Proposed
According to documents obtained from the World Bank, the first facility is an additional $500m for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL.
The proposed funding would increase ACReSAL’s total financing from $700m to $1.2bn.
The project operates across 19 northern states and the Federal Capital Territory and focuses on issues including land degradation, water insecurity, flooding, erosion, irrigation, drainage, reforestation and climate resilience.
The World Bank has tentatively scheduled October 29, 2026, for its board to consider the additional financing.
Another $500m For Social Protection
The second proposed facility is a $500m IDA credit for the Household Prosperity and Empowerment-Social Protection Project.
The programme is designed to expand social assistance for poor and vulnerable households, including targeted cash transfers, while strengthening the national social registry and linking it with the National Identification Number system.
The World Bank’s technical design review is expected on October 30, with approval tentatively scheduled for March 16, 2027.
Third Loan Targets Early Childhood Development
The third proposed $500m facility is for Nigeria’s Early Childhood Development programme.
The programme would cover all 36 states and the FCT and focus on healthcare, nutrition, early learning, childcare, water and sanitation for children aged zero to five.
The proposed financing comprises a $400m programme-for-results component and $100m investment project financing.
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The World Bank has tentatively scheduled March 15, 2027, for consideration of the facility.
Nigeria’s Debt Hits N166.79tn
The proposed borrowing comes as Nigeria’s total public debt climbed to N166.79tn at the end of June 2026, according to figures from the Debt Management Office.
That represents a N14.39tn increase from the N152.40tn recorded in June 2025.
On a quarterly basis, public debt rose from N159.35tn in March to N166.79tn in June.
Domestic debt accounted for N91.59tn, while external debt stood at N75.20tn.
World Bank Exposure Reaches $20.73bn
Nigeria’s existing debt to the World Bank Group also increased, reaching $20.73bn at the end of June 2026.
Of that amount, $19.12bn was owed to the International Development Association, while $1.61bn was owed to the International Bank for Reconstruction and Development.
The World Bank Group’s exposure represented about 38 per cent of Nigeria’s $54.52bn external debt stock at the end of June, according to the figures reported by PUNCH.
Loan Debate Amid Rising Debt
The fresh borrowing discussions are likely to renew debate over Nigeria’s debt profile and how effectively borrowed funds are being deployed.
Lagos-based economist Adewale Abimbola, quoted by PUNCH, said borrowing from multilateral institutions such as the World Bank is not necessarily problematic when the financing is concessional and tied to viable projects.
He said the key issue is how such funds are utilised and whether they generate sustainable economic and social benefits.
The three proposed facilities have not yet been presented as approved loans. Their disbursement would depend on the World Bank’s consideration and approval processes.
