Nigeria Seeks Fresh $1.5 Billion World Bank Loans as Public Debt Hits ₦166.79 Trillion

The Federal Government of Nigeria is in discussions with the World Bank over three proposed financing facilities worth a combined $1.5 billion, even as the country’s total public debt climbed to ₦166.79 trillion by the end of June 2026.

The proposed financing consists of three separate $500 million facilities aimed at supporting climate resilience, social protection and early childhood development programmes. The facilities are at different stages of preparation and have not yet been approved by the World Bank.

One of the proposed facilities is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes, or ACReSAL, project. The programme focuses on issues including land degradation, water shortages, erosion control, irrigation and other climate-related challenges across 19 northern states and the Federal Capital Territory. The World Bank is scheduled to consider the proposed financing on October 29, 2026.

Another $500 million facility is being proposed for the Household Prosperity and Empowerment Social Protection Project, known as HOPE-SP, which is designed to expand social assistance and strengthen social protection systems for vulnerable households.

The third proposed $500 million facility is for an early childhood development programme covering areas such as healthcare, nutrition, childcare and early learning for children from birth to age five.

The proposed borrowing comes as Nigeria’s public debt continues to rise. The Debt Management Office reported that total public debt increased from ₦159.35 trillion at the end of March 2026 to ₦166.79 trillion by June 30, representing an increase of ₦7.44 trillion, or about 4.7 percent, in three months.

Domestic debt accounted for ₦91.59 trillion, or 54.91 percent of the total, while external debt stood at about ₦75.20 trillion. In dollar terms, Nigeria’s total public debt was $120.93 billion at the end of June.

The Federal Government accounted for the largest share of the country’s debt, with obligations of approximately ₦152.77 trillion, while the 36 states and the Federal Capital Territory accounted for ₦14.01 trillion.

The proposed World Bank financing would therefore add to Nigeria’s borrowing pipeline if approved, but the $1.5 billion should not currently be described as new debt already incurred by the Federal Government.

The discussions come amid renewed debate over Nigeria’s rising debt stock and how additional borrowing should be used to support economic and social programmes.