FG Seeks Fresh $1.5bn World Bank Loan

The Federal Government is in discussions with the World Bank for three new loans totalling $1.5bn, even as Nigeria’s public debt rises to N166.79tn.

Documents from the World Bank show that the proposed financing consists of three separate $500m facilities targeting climate resilience, social protection and early childhood development.

The first facility is an additional $500m financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL.

The proposed financing is expected to increase ACReSAL’s total funding from $700m to $1.2bn. The project operates across 19 northern states and the Federal Capital Territory, focusing on land degradation, water insecurity, climate vulnerability and declining agricultural productivity.

The additional financing would support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage, water harvesting, reforestation and other climate-resilient interventions.

The World Bank is expected to consider the ACReSAL financing on October 29, 2026.

Another proposed $500m facility is the Household Prosperity and Empowerment-Social Protection Project, designed to strengthen social assistance for poor and vulnerable households.

The programme would support targeted cash transfers, modernise the social registry, integrate the National Identification Number into the social protection information system and strengthen implementation at federal, state and local government levels.

The third proposed facility, also worth $500m, is for the Nigeria Early Childhood Development Programme.

The programme is expected to cover all 36 states and the FCT, with a focus on improving access to health, nutrition, early learning, childcare, water and sanitation services for children aged zero to five.

The proposed borrowing comes amid a rise in Nigeria’s public debt. Data from the Debt Management Office showed that total public debt reached N166.79tn at the end of June 2026, up from N152.40tn a year earlier.

Nigeria’s external debt stood at $54.52bn at the end of June, while its obligations to the World Bank Group reached $20.73bn.

The proposed facilities are expected to be financed through the International Development Association, the World Bank’s concessional financing arm.

The Federal Government has continued to rely on multilateral financing for projects covering infrastructure, social development, agriculture, climate resilience and human capital.

The latest proposals will require consideration and approval through the relevant processes before the loans can be formally disbursed.