By Palma Ileye
The Federal Government has opened discussions with the World Bank for three new loan facilities totalling $1.5 billion, even as Nigeria’s public debt stock rose to N166.79 trillion as of June 2026.
Documents from the World Bank show that the proposed facilities consist of three $500 million loans aimed at climate resilience, social protection and early childhood development.
The first is an additional $500 million financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL. The World Bank has scheduled October 29, 2026, for consideration of the facility by its board.
The additional financing would raise ACReSAL’s total funding from $700 million to $1.2 billion through the International Development Association, the World Bank’s concessional lending arm.
The funds are expected to support landscape restoration, watershed rehabilitation, flood management, irrigation, reforestation and other measures to address land degradation and climate vulnerability.
ACReSAL currently operates in 19 northern states and the Federal Capital Territory. The World Bank estimates that desertification affects 43 per cent of Nigeria’s land area and warns that climate change could reduce annual gross domestic product by 2.6 per cent by 2030 and as much as 6.7 per cent by 2050.
The second proposed facility is a $500 million IDA credit for the Household Prosperity and Empowerment-Social Protection Project, known as HOPE-SP.
The project is still at the preparation stage, with a technical design review scheduled for October 30, 2026, and tentative approval targeted for March 16, 2027.
HOPE-SP is designed to expand social assistance for poor and vulnerable households while strengthening federal and state financing and delivery systems. Its interventions include conditional and unconditional cash transfers, updating the social registry, integrating National Identification Numbers into social protection databases and improving administrative capacity.
The World Bank noted that Nigeria spent only 0.14 per cent of GDP on social safety nets in 2021, compared with a global average of 1.5 per cent and 1.2 per cent among lower-middle-income countries.
The lender also said household welfare had been weakened by the effects of the COVID-19 pandemic, inflation, natural disasters and regional conflicts, while the removal of fuel subsidies and exchange-rate reforms had increased short-term living costs.
The third proposed $500 million facility is for the Nigeria Early Childhood Development Programme, which is scheduled for technical review on October 30, 2026, and board consideration on March 15, 2027.
The programme will combine $400 million in programme-for-results financing with $100 million in investment project financing. It will target children aged zero to five with interventions covering health, nutrition, early learning, childcare and sanitation across the 36 states and the FCT.
The World Bank said 40 per cent of Nigerian children under five are stunted, while fewer than half are developmentally on track. It also reported that only 36 per cent of children aged 36 to 59 months participate in organised early learning programmes.
The proposed borrowing comes against the backdrop of rising public debt.
Data from the Debt Management Office showed that Nigeria’s total public debt increased by N14.39 trillion, from N152.40 trillion in June 2025 to N166.79 trillion by June 2026, representing a 9.44 per cent increase.
In dollar terms, the debt rose from $99.66 billion to $120.93 billion, representing a 21.35 per cent increase, partly reflecting exchange-rate valuation effects.
The DMO used an official exchange rate of N1,379.18 to the dollar in June 2026, compared with N1,529.21 a year earlier.
On a quarter-on-quarter basis, total debt increased by N7.44 trillion, or 4.67 per cent, from N159.35 trillion in March 2026.
Domestic debt rose by N11.04 trillion year-on-years to N91.59 trillion in June 2026, while external liabilities increased to $54.52 billion from $46.98 billion a year earlier.
The latest borrowing proposals would add to government financing for climate adaptation, social protection and human capital development as the country continues to manage growing debt obligations.
