The Federal Government is seeking three new World Bank loans worth a combined $1.5bn, even as Nigeria’s public debt rises to a record ₦166.79tn.
The proposed facilities, each valued at $500m, are targeted at climate resilience, social protection and early childhood development.
The first facility is an additional $500m for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL. The World Bank is expected to consider the facility on October 29, 2026.
The additional funding would increase the size of the ACReSAL project from its previously approved $700m to $1.2bn. The project focuses on restoring degraded land, rehabilitating watersheds, managing erosion and flooding, improving irrigation and drainage, and expanding climate-resilient interventions.
The proposed funding includes $310m for dryland management, $165m for community climate resilience and $25m for institutional strengthening and project management.
ACReSAL currently operates in 19 northern states and the Federal Capital Territory, addressing land degradation, water insecurity, climate vulnerability and declining agricultural productivity.
The World Bank estimates that desertification and land degradation affect about 43 per cent of Nigeria’s land area. It also projects that the effects of climate change could reduce Nigeria’s gross domestic product by about 2.6 per cent annually by 2030 and as much as 6.7 per cent by 2050.
The second proposed $500m facility is for the Household Prosperity and Empowerment-Social Protection Project, known as HOPE-SP.
The programme is designed to expand social assistance to poor and vulnerable households through targeted cash transfers, improvements to the national social registry and the integration of National Identification Numbers into the social protection information system.
The proposed financing comprises a $420m results-based component and an $80m investment project financing component.
The project is expected to undergo a technical design review on October 30, 2026, with approval tentatively scheduled for March 16, 2027.
The third proposed facility is another $500m for the Nigeria Early Childhood Development Programme, which is expected to cover all 36 states and the Federal Capital Territory.
The programme would focus on improving access to health, nutrition, early learning, childcare, water and sanitation services for children aged zero to five.
It would consist of a $400m programme-for-results component and $100m in investment project financing, with a proposed approval date of March 15, 2027.
The World Bank said the intervention was necessary because 40 per cent of Nigerian children under five are stunted, fewer than half are developmentally on track and only 36 per cent of children aged 36 to 59 months attend organised early learning.
Debt rises to ₦166.79tn
The proposed borrowing comes against the backdrop of a significant increase in Nigeria’s debt stock.
Nigeria’s total public debt rose from ₦152.40tn in June 2025 to ₦166.79tn at the end of June 2026, representing an increase of ₦14.39tn, or 9.44 per cent, within one year.
The figure was also ₦7.44tn higher than the ₦159.35tn recorded in March 2026.
Domestic debt accounted for ₦91.59tn, representing 54.91 per cent of the total, while external debt stood at ₦75.20tn.
Federal Government domestic debt increased from ₦76.59tn in June 2025 to ₦87tn in June 2026.
Treasury bills recorded one of the sharpest increases, rising from ₦12.76tn to ₦19.48tn within the year, representing a 52.64 per cent increase.
Nigeria’s external debt also increased, with the dollar value rising from $46.98bn in June 2025 to $54.52bn in June 2026.
World Bank exposure reaches $20.73bn
Nigeria’s outstanding debt to the World Bank Group reached $20.73bn at the end of June 2026, comprising $19.12bn owed to the International Development Association and $1.61bn to the International Bank for Reconstruction and Development.
The World Bank Group’s exposure accounted for about 38 per cent of Nigeria’s $54.52bn external debt at the end of June.
Nigeria’s total multilateral external debt stood at $24.76bn, meaning World Bank obligations accounted for roughly 84 per cent of the country’s multilateral debt.
Commercial external debt stood at $23.16bn, while bilateral debt was $6.61bn.
The proposed new facilities would add to Nigeria’s existing obligations to the World Bank if approved and disbursed.
Economist Adewale Abimbola said multilateral loans such as those from the World Bank are generally concessionary, with longer repayment periods and lower interest rates than many commercial borrowing arrangements.
He said the key consideration was how effectively the funds were deployed, particularly whether they were directed towards projects capable of supporting economic growth, improving public services and strengthening government revenue.
The latest proposals come as Nigeria continues to manage rising domestic and external debt obligations, with the country’s total public debt now standing at ₦166.79tn.
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