The Federal Government under President Bola Ahmed Tinubu has opened discussions with the World Bank for three proposed loans totalling $1.5 billion, even as Nigeria’s public debt climbed to a record N166.79 trillion as of June 2026.
The proposed financing comprises three separate $500 million facilities for climate resilience, social protection and early childhood development.
World Bank project documents show that the most immediate proposal is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project.
The World Bank is expected to consider the proposed additional financing on October 29, 2026, while the Federal Ministry of Environment will implement the project.
The additional funding would increase ACReSAL’s financing from $700 million to $1.2 billion and support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation, drainage, water harvesting, reforestation and other climate-resilient projects.
The World Bank said the Nigerian government requested the additional financing “to scale up demonstrated project results and strengthen the institutional, operational and financing arrangements needed to sustain integrated landscape management.”
The project currently operates across 19 northern states and the Federal Capital Territory.
The second proposed facility is a $500 million International Development Association (IDA) credit for the Household Prosperity and Empowerment-Social Protection (HOPE-SP) project.
The proposed programme is designed to provide regular social assistance to poor and vulnerable households while strengthening social protection systems at federal, state and local government levels.
The World Bank said the programme would establish “a sustainable social assistance to poor and vulnerable households, financed increasingly from federal and state budgets and delivered through strengthened state and local government systems.”
The facility would support targeted cash transfers, modernise the social registry, integrate the National Identification Number into the social protection information system and strengthen programme implementation.
The proposed project is expected to undergo technical design review on October 30, 2026, with March 16, 2027, tentatively set as its approval date.
The third proposed loan is another $500 million IDA credit for Nigeria’s Early Childhood Development programme.
The programme would cover all 36 states and the FCT and target children aged zero to five.
It is designed to improve access to health, nutrition, early learning, childcare, water and sanitation services.
The proposed financing comprises a $400 million programme-for-results component and $100 million in investment project financing.
The World Bank said the programme was needed because “40 percent of children under five are stunted, fewer than half are developmentally on track, 36 percent of children aged 36 to 59 months attend organised early learning.”
The proposed loans come as Nigeria’s debt burden continues to rise.
Meanwhile, according to the Debt Management Office, Nigeria’s total public debt increased from N159.35 trillion in March 2026 to N166.79 trillion at the end of June, representing a N7.44 trillion increase in three months.
The DMO’s latest figures show that domestic debt stood at N91.59 trillion, while external debt was N75.20 trillion.
The Federal Government accounted for N152.77 trillion of the total debt, while states and the Federal Capital Territory accounted for N14.01 trillion.
The latest figure represents a N14.39 trillion increase from the N152.40 trillion recorded in June 2025.
The proposed $1.5 billion World Bank facilities would add to Nigeria’s borrowing if approved and disbursed, although the three loans are still at different stages of consideration and preparation.
Nigeria already has substantial exposure to the World Bank, particularly through the IDA, the bank’s concessional financing arm.
The new proposals therefore come as the government continues to seek external financing for programmes covering climate resilience, social protection and human capital development.