The Federal Government is in discussions with the World Bank for three proposed loans worth a combined $1.5 billion, even as Nigeria’s public debt reached a record ₦166.79 trillion at the end of June 2026.
The proposed facilities comprise three $500 million programmes covering climate resilience, social protection and early childhood development.
The first is additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project. The proposed $500 million would expand the programme to support land restoration, flood and erosion control, irrigation, water management and climate resilience across northern Nigeria and the FCT.
The second proposed facility is the Household Prosperity and Empowerment-Social Protection Project (HOPE-SP). It would support cash transfers, improve the social registry and strengthen social protection systems for vulnerable households.
The third is a $500 million Nigeria Early Childhood Development programme, aimed at improving access to healthcare, nutrition, early learning, childcare, water and sanitation for children aged zero to five.
Debt Rises
According to the Debt Management Office, Nigeria’s total public debt increased from ₦152.40tn in June 2025 to ₦166.79tn in June 2026, representing a 9.44 per cent rise.
External debt stood at $54.52bn, while domestic debt accounted for ₦91.59tn of the total portfolio.
Nigeria’s outstanding obligations to the World Bank Group reached $20.73bn by June 2026, including $19.12bn owed to IDA and $1.61bn to IBRD.
Economist Adewale Abimbola said borrowing from multilateral institutions can provide relatively favourable financing terms, but stressed that the impact depends on how effectively the funds are deployed.
The proposed loans will therefore add to Nigeria’s existing debt obligations, while the government says the financing would support climate resilience, social protection and human-capital development.
