FG Seeks Fresh $1.5bn World Bank Financing as Nigeria’s Debt Hits ₦166.79tn
E-ISSN: 2354-4481
By Willington Uzoechi
The Federal Government has opened discussions with the World Bank for three proposed financing facilities totaling $1.5 billion, as Nigeria’s public debt rose to ₦166.79 trillion at the end of June 2026.
Documents from the World Bank indicate that the proposed financing comprises three separate $500 million facilities targeting climate resilience, social protection and early childhood development.
The facilities are at different stages of preparation and are not yet approved loans. They are expected to undergo technical reviews and consideration by the World Bank’s board before any disbursement can take place.
The first proposal is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL.
The World Bank has tentatively scheduled October 29, 2026, for consideration of the additional financing. If approved, the facility would increase the total financing for ACReSAL from $700 million to $1.2 billion.
The Federal Republic of Nigeria would be the borrower, while the Federal Ministry of Environment would implement the project The additional funding is expected to support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage, water harvesting, reforestation and other climate-resilience interventions across participating areas.
Another proposed $500 million facility is the Household Prosperity and Empowerment-Social Protection Project, known as HOPE-SP.
The programme is designed to strengthen social protection systems and expand assistance to poor and vulnerable households. Proposed interventions include conditional and unconditional cash transfers, improvement of the national social registry and stronger coordination of social protection programmes between federal and state authorities.
The third proposed facility is a $500 million Nigeria Early Childhood Development programme.
According to the World Bank documents, the programme is expected to operate across all 36 states and the Federal Capital Territory, with interventions covering health, nutrition, early learning, childcare, water and sanitation services for children aged zero to five.
The proposed programme is linked to concerns over child nutrition, development and access to organised early learning in Nigeria. The World Bank’s 2026 Nigeria Development Update has also highlighted early childhood development as an important area for strengthening human capital and improving long-term economic opportunities.
The proposed borrowing comes against the backdrop of a rise in Nigeria’s public debt.
Figures from the Debt Management Office show that the country’s total public debt increased from ₦152.40 trillion in June 2025 to ₦166.79 trillion at the end of June 2026. The latest figure represents an increase of ₦14.39 trillion, or 9.44 per cent, over the one-year period.
As of June 2026, Nigeria’s external debt stood at $54.52 billion, while domestic debt remained the larger component of the country’s overall debt portfolio. Nigeria’s outstanding obligations to the World Bank Group were reported at $20.73 billion.
The proposed $1.5 billion World Bank financing would therefore add to Nigeria’s pipeline of multilateral borrowing if the facilities receive the required approvals.
The World Bank’s consideration of the proposals will determine whether the financing proceeds, with the facilities subject to the bank’s established appraisal and approval processes.
