Despite Nigeria’s total public debt climbing to a record N166.79 trillion as at the end of June 2026, the Federal Government has opened fresh talks with the World Bank for three new loans totalling $1.5 billion.
Documents obtained from the World Bank show the three facilities are all $500m each, and are still under preparation – not yet approved.
Breakdown of the $1.5bn:
1. $500m for Climate Resilience – ACReSAL (Most Advanced)
The additional $500m for the Agro-Climatic Resilience in Semi-Arid Landscapes project. The World Bank Board is expected to consider it on October 29, 2026 Borrower: Federal Republic of Nigeria. Implementing Agency: Federal Ministry of Environment.
If approved, it will raise ACReSAL funding from $700m to $1.2bn, all via an IDA concessional loan. ACReSAL currently operates in 19 northern states + FCT, tackling desertification, erosion, flooding, and water scarcity.
Use of funds: $310m for dryland management, $165m for community climate resilience, $25m for institutional strengthening. Activities include landscape restoration, watershed rehabilitation, irrigation, water harvesting, and reforestation. The project claims 9.3m beneficiaries already.
1. $500m for Social Protection – HOPE-SP
Household Prosperity and Empowerment-Social Protection Project. Technical design review on October 30, 2026, tentative approval March 16, 2027. Implementing agency: Federal Ministry of Humanitarian Affairs.
It will expand cash transfers to poor and vulnerable households, strengthen the National Social Register and integrate NIN. World Bank notes Nigeria spent only 0.14% of GDP on safety nets in 2021 vs. a 1.5% global average, while poverty rose from 40% in 2019 to 56% in 2023 and could hit 62.5% in 2026.
1. $500m for Early Childhood – ECD
Nigeria Early Childhood Development programme. Review on Oct 30, 2026, approval March 15, 2027. Covers all 36 states + FCT to improve health, nutrition, and early learning for children 0-5 years. World Bank said 40% of children under five are stunted, and less than half are developmentally on track.
Debt Context:
DMO figures show total debt rose from N159.35trn in March 2026 to N166.79trn in June – an increase of N7.44trn in 3 months. In dollars: $99.66bn to $120.93bn year-on-year.
Nigeria’s outstanding debt to the World Bank alone has hit $20.73bn ($19.12bn IDA + $1.61bn IBRD), about 38% of Nigeria’s $54.52bn external debt.