The Federal Government has opened discussions with the World Bank for three new loans worth a combined $1.5 billion, despite Nigeria’s public debt rising to a record ₦166.79 trillion as of June 2026. The proposed financing includes three separate $500 million facilities focused on climate resilience, social protection and early childhood development.
The first facility is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project. If approved, the funding would increase the programme’s total value from $700 million to $1.2 billion. The project aims to support landscape restoration, watershed rehabilitation, flood and erosion control, irrigation, water storage and other climate-resilient initiatives.
According to the World Bank, “The Government of Nigeria has requested AF of $500m to scale up demonstrated project results and strengthen the institutional, operational and financing arrangements needed to sustain integrated landscape management.”
The second proposed facility is a $500 million credit under the Household Prosperity and Empowerment-Social Protection (HOPE-SP) project. The programme is designed to provide social assistance to poor and vulnerable households through targeted cash transfers while strengthening social protection systems across federal, state and local governments.
The third facility is a $500 million loan for the Nigeria Early Childhood Development programme. The initiative will support health, nutrition, childcare, sanitation and early learning services for children aged zero to five across all 36 states and the Federal Capital Territory.
The proposed borrowing comes as Nigeria’s public debt increased from ₦152.40 trillion in June 2025 to ₦166.79 trillion in June 2026, reflecting a year-on-year rise of 9.44 per cent.
World Bank exposure to Nigeria reached $20.73 billion by the end of June 2026, accounting for about 38 per cent of the country’s total external debt stock.
Economist Adewale Abimbola said the key issue is not borrowing itself but how the funds are used. “If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea,” he said. “Borrowing isn’t bad; what matters is utilisation.”
