Nigeria Seeks $1.5 Billion in New World Bank Loans as Public Debt Hits Record ₦166.79 Trillion

 

The Federal Government has opened discussions with the World Bank for three new loans totaling $1.5 billion, according to project documents from the lender, even as Nigeria’s total public debt climbed to a record ₦166.79 trillion by the end of June 2026.

The proposed financing consists of three separate $500 million facilities from the World Bank’s International Development Association (IDA), its concessional lending arm. The loans target climate resilience, social protection, and early childhood development.

The most advanced is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project. If approved, this would increase the project’s total financing from $700 million to $1.2 billion. The World Bank’s board is scheduled to consider the additional financing on October 29, 2026. The Federal Ministry of Environment is the implementing agency. ACReSAL currently operates across 19 northern states and the Federal Capital Territory, focusing on land restoration, watershed rehabilitation, erosion and flood control, irrigation, and other measures to combat desertification and climate vulnerability.

The second proposed facility is a $500 million credit for the Household Prosperity and Empowerment–Social Protection Project (HOPE-SP). This aims to expand social assistance to poor and vulnerable households through targeted support, strengthen the national social registry, and improve social protection systems at federal, state, and local levels. Its technical design review is expected around late October 2026, with board consideration tentatively set for March 16, 2027.

The third is a $500 million facility for the Nigeria Early Childhood Development programme. It seeks to expand access to integrated health, nutrition, early learning, childcare, water, and sanitation services for children aged zero to five and their caregivers across all 36 states and the FCT. Board consideration is tentatively scheduled for March 15, 2027.

Nigeria’s public debt rose to ₦166.79 trillion ($120.93 billion) as of June 30, 2026, according to the Debt Management Office. This marks an increase of ₦14.39 trillion (about 9.4 percent) from ₦152.40 trillion a year earlier, and a rise of ₦7.44 trillion from the previous quarter. Domestic debt accounted for ₦91.59 trillion (54.91 percent of the total), while external debt stood at ₦75.20 trillion.

World Bank exposure to Nigeria had already reached approximately $20.73 billion by the end of June 2026, representing a significant share of the country’s external obligations.

The proposed borrowing comes amid ongoing economic pressures, including high living costs and fiscal constraints. Officials have framed the facilities as targeted support for vulnerable populations and climate adaptation in line with national development priorities. Further details on the loans’ terms and conditions are expected as the projects advance through the World Bank’s approval process.