The Federal Government has opened discussions with the World Bank for three new financing facilities worth a combined $1.5bn, even as Nigeria’s total public debt climbed to N166.79tn as of June 2026.
Documents from the World Bank indicate that the proposed facilities comprise three separate $500m loans targeting climate resilience, social protection and early childhood development.
The first proposed facility is an additional $500m financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, popularly known as ACReSAL. The World Bank has scheduled October 29, 2026, for its board to consider the proposed financing.
Nigeria’s Federal Ministry of Environment is expected to implement the project, which is designed to address land degradation, water insecurity and climate-related vulnerabilities. If approved, the additional funding would increase the overall size of ACReSAL from $700m to $1.2bn.
The proposed financing would support activities including landscape restoration, watershed rehabilitation, erosion and flood control, irrigation and drainage, water harvesting, reforestation and other measures aimed at improving climate resilience.
ACReSAL is being implemented across 19 northern states and the Federal Capital Territory. The World Bank estimates that desertification and land degradation affect about 43 per cent of Nigeria’s land area, highlighting the scale of the environmental challenges the programme seeks to address.
A second $500m facility is being prepared under the Household Prosperity and Empowerment-Social Protection Project, known as HOPE-SP. The proposed programme is intended to expand social assistance for poor and vulnerable households while strengthening the participation of federal and state governments in financing social protection programmes.
The World Bank’s proposed financing includes $420m for a results-based programme and $80m for investment project financing. The Federal Ministry of Finance is listed as the borrower, while the Federal Ministry of Humanitarian Affairs and Poverty Reduction is expected to oversee implementation.
The programme would support targeted cash transfers, improvements to the National Social Registry, integration of the National Identification Number into social protection systems and stronger delivery mechanisms at federal, state and local government levels.
The third proposed facility is another $500m loan for Nigeria’s Early Childhood Development programme. The project is expected to operate across all 36 states and the FCT, focusing on health, nutrition, early learning, childcare, water and sanitation services for children from birth to five years.
The World Bank has scheduled October 30 for the technical design review of the proposed early-childhood programme, with March 2027 listed as the estimated period for consideration.
The proposed borrowing comes against the backdrop of a rising public debt burden. Data from the Debt Management Office showed that Nigeria’s total public debt increased from N152.40tn in June 2025 to N166.79tn in June 2026, representing an increase of N14.39tn, or 9.44 per cent.
In dollar terms, the debt rose from $99.66bn to $120.93bn during the same period. The DMO attributed part of the difference between the naira and dollar growth rates to changes in the exchange rate used to value Nigeria’s external obligations.
Between March and June 2026, total public debt also increased from N159.35tn to N166.79tn.
Domestic debt stood at N91.59tn, representing 54.91 per cent of the total, while external debt was N75.20tn, accounting for 45.09 per cent.
Nigeria’s obligations to the World Bank Group also increased during the period. The country owed $20.73bn to the World Bank Group as of June 2026, comprising $19.12bn to the International Development Association and $1.61bn to the International Bank for Reconstruction and Development.
The World Bank exposure represented roughly 38 per cent of Nigeria’s $54.52bn external debt at the end of June.
The Federal Government’s latest request has therefore renewed attention on the balance between development financing and debt sustainability. The proposed loans are targeted at sectors including environmental protection, social welfare and early childhood development, while the government’s overall borrowing position continues to attract scrutiny.
Former Vice-President Atiku Abubakar has recently called for greater transparency over Nigeria’s growing debt obligations, questioning the scale and utilisation of new borrowing.
However, economists have noted that the nature and terms of borrowing are important considerations. Economist Adewale Abimbola said concessional financing from multilateral institutions such as the World Bank can carry lower interest rates and longer repayment periods than commercial borrowing.
He argued that the key issue was how borrowed funds were utilised, particularly whether they were channelled into projects capable of supporting economic growth and improving public services.
The proposed $1.5bn facilities remain subject to the World Bank’s approval processes. If approved, the financing would add to Nigeria’s existing obligations while providing funding for programmes covering climate resilience, social protection and early childhood development.
