The Federal Government of Nigeria is in discussions with the World Bank for three new loans amounting to $1.5bn. These proposed financing facilities are for climate resilience, social protection, and early childhood development. The World Bank has set October 29, 2026, as the estimated date for consideration of the first loan by its board. The borrower is the Federal Republic of Nigeria, with the Federal Ministry of Environment as the implementing agency.
The most immediate loan is a proposed $500m additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project (ACReSAL). This financing would increase the project's size from $700m to $1.2bn, entirely financed through the International Development Association, the World Bank's concessional financing arm. The additional financing is expected to support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage, water harvesting and storage, reforestation, and other climate-resilient interventions.
The World Bank document states that the Government of Nigeria has requested $500m to scale up demonstrated project results and strengthen institutional, operational, and financing arrangements needed to sustain integrated landscape management. Of the additional $500m, $310m is proposed for dryland management, $165m for community climate resilience, and $25m for institutional strengthening and project management. ACReSAL currently operates across 19 northern states and the Federal Capital Territory, targeting land degradation, water insecurity, climate vulnerability, and declining agricultural productivity.
The World Bank reports that desertification and land degradation affect an estimated 43% of Nigeria's land area. Failure to address climate change could reduce the country's gross domestic product by about 2.6% annually by 2030 and as much as 6.7% by 2050. The second proposed loan is another $500m IDA credit for the Household Prosperity and Empowerment-Social Protection Project. The project is at an earlier stage of preparation, with its technical design review expected on October 30, 2026.
The HOPE-SP project aims to establish regular social assistance for poor and vulnerable households, gradually shifting financing responsibility towards federal and state budgets. The World Bank document states that Nigeria spent only 0.14% of GDP on social safety-net programs in 2021, compared with a global average of 1.5% and 1.2% among lower-middle-income countries. The bank estimates that the proportion of Nigerians living in poverty increased from 40% in 2019 to 56% in 2023 and could reach 62.5% in 2026.
The third proposed $500m facility is for the Nigeria Early Childhood Development program, with an estimated approval date of March 15, 2027. The project would cover all 36 states and the Federal Capital Territory, seeking to improve access to an integrated package of health, nutrition, early learning, childcare, water and sanitation, and other services for children aged zero to five. The World Bank says 40% of children under five are stunted, and fewer than half are developmentally on track.
Nigeria's total public debt rose to a record N166.79tn at the end of June 2026, from N152.40tn in June 2025, representing a 9.44% year-on-year increase. In dollar terms, public debt jumped by $21.27bn, or 21.35%, from $99.66bn to $120.93bn over the same period. Domestic liabilities remain the larger component of the debt portfolio, standing at N91.59tn, or 54.91% of total public debt.
Key points
- Nigeria seeks $1.5bn World Bank loans for climate resilience, social protection, and early childhood development.
- The proposed loans come as Nigeria's public debt climbs to a record N166.79tn at the end of June 2026.
- The World Bank reports that failure to address climate change could reduce Nigeria's GDP by 2.6% annually by 2030 and 6.7% by 2050.
