The Federal Government of Nigeria has initiated talks with the World Bank for $1.5 billion in fresh loans to support key development programmes. This development comes amid rising concerns over Nigeria's growing public debt, which stood at N166.79 trillion as of June 30, 2026. The proposed financing consists of three separate $500 million loans aimed at addressing critical areas such as social protection, early childhood development, and climate resilience.
The first proposed facility is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes project (ACReSAL). This project operates in 19 northern states and the Federal Capital Territory, focusing on tackling land degradation, water shortages, climate risks, and declining agricultural productivity. The additional funding will increase the total World Bank financing for ACReSAL to $1.2 billion, following the initial $700 million approved in December 2021.
The second proposed facility is another $500 million for Nigeria's Early Childhood Development programme. This project aims to provide support for children aged zero to five and their caregivers across all 36 states and the Federal Capital Territory. The programme will focus on health, nutrition, early learning, childcare, and other services aimed at improving the development of young children. According to World Bank data, 40 per cent of Nigerian children under five are stunted.
The third proposed loan is the $500 million Household Prosperity and Empowerment Social Protection Project (HOPE SP). This programme is designed to strengthen Nigeria's social protection system and provide support to poor and vulnerable households through targeted cash transfers. It will also strengthen social protection institutions and gradually increase funding from federal and state governments rather than relying heavily on external financing.
The World Bank estimates that 62.5 per cent of Nigerians could be living in poverty in 2026, compared with 40 per cent in 2019 and 56 per cent in 2023. The proposed loans are still being prepared and are not yet approved. If approved, they would add $1.5 billion to Nigeria's World Bank financing pipeline. The country's total public debt stood at $120.93 billion, comprising $54.52 billion in external debt and $66.41 billion in domestic debt.
Of Nigeria's total debt, domestic debt accounted for N91.59 trillion, representing 54.91 per cent, while the remaining portion was external debt. The World Bank has scheduled the first loan for board consideration on October 29, 2026. The projects are at different stages of preparation, with the first expected to be presented to the World Bank's board for approval in October 2026.
The proposed loans are expected to support critical development programmes in Nigeria, including social protection, early childhood development, and climate resilience. The country's rising public debt has raised concerns, with the total public debt increasing from N159.35 trillion as of March 31, 2026, to N166.79 trillion as of June 30, 2026.
Key points
- Nigeria seeks $1.5bn in fresh World Bank loans for social protection, early childhood development, and climate resilience programmes.
- The proposed loans are still being prepared and are not yet approved.
- Nigeria's total public debt stood at N166.79 trillion as of June 30, 2026.
