FG Seeks $1.5bn World Bank Financing as Nigeria’s Debt Rises to N166.79tn
The Federal Government is negotiating three proposed financing facilities worth a combined $1.5bn with the World Bank to support climate resilience, early childhood development and social protection programmes across Nigeria.
The proposed facilities, each valued at $500m, are at different stages of preparation, according to documents obtained from the World Bank.
The first facility is an additional $500m financing for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project, which is scheduled for consideration by the World Bank’s Board on October 29, 2026.
If approved, the additional funding will increase World Bank financing for ACReSAL from the existing $700m to $1.2bn.
ACReSAL is being implemented across 19 northern states and the Federal Capital Territory, with a focus on addressing land degradation, water insecurity, climate vulnerability and declining agricultural productivity.
The World Bank’s project appraisal document said the Nigerian government requested the additional financing to expand the project’s demonstrated results and strengthen institutional, operational and financing arrangements for sustainable integrated landscape management.
Under the proposed financing, $310m would be allocated to dryland management, $165m to community climate resilience, while $25m would support institutional strengthening and project management.
Another $500m facility is being proposed for Nigeria’s Early Childhood Development Programme, aimed at expanding access to health, nutrition, early learning, childcare and related services for children aged zero to five and their caregivers across the 36 states and the FCT.
World Bank data cited in the project documents indicate that 40 per cent of Nigerian children under five are stunted, while fewer than half are considered developmentally on track.
The data also show that only 36 per cent of children aged between 36 and 59 months attend organised early-learning programmes.
The third proposed $500m facility is the Household Prosperity and Empowerment–Social Protection Project, known as HOPE-SP.
The proposed financing is expected to support conditional and unconditional cash transfers to poor and vulnerable households, strengthen social protection institutions and gradually increase the share of financing provided through federal and state government budgets.
According to the World Bank, 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 three proposed facilities are expected to be financed through credits from the World Bank’s International Development Association.
The proposed borrowing comes amid an increase in Nigeria’s public debt, which rose to N166.79tn at the end of June 2026 from N159.35tn in March.
In dollar terms, Nigeria’s total public debt stood at $120.93bn as of June, comprising $54.52bn in external debt and $66.41bn in domestic debt.
Nigeria’s outstanding debt to the World Bank Group also increased to $20.73bn by June 2026, representing about 38 per cent of the country’s total external debt.
However, the proposed $1.5bn facilities have not yet been approved and should not be treated as existing loans.
The ACReSAL additional financing is currently scheduled for consideration by the World Bank Board in October, while the proposed Early Childhood Development and HOPE-SP facilities are expected to be presented to the Board in March 2027.
If approved, the three facilities would add $1.5bn to Nigeria’s pipeline of World Bank-backed financing.
