The Federal Government is seeking three new World Bank loans totalling $1.5 billion, even as Nigeria’s total public debt rose to a record N166.79 trillion as of June 2026.
The proposed facilities, each valued at $500 million, are targeted at climate resilience, social protection and early childhood development.
Under the proposal, the Federal Government is seeking an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project, which would raise the programme’s total financing to $1.2 billion.
The additional funding is expected to support land restoration, flood and erosion control, irrigation, water management and other climate-resilience interventions, particularly across northern Nigeria.
Another $500 million facility is being proposed for the Household Prosperity and Empowerment-Social Protection (HOPE-SP) programme.
The loan is expected to support poor and vulnerable households through cash transfers, an expanded social registry and efforts to strengthen Nigeria’s social protection system.
The third proposed $500 million loan would finance the Nigeria Early Childhood Development Programme, covering all 36 states and the Federal Capital Territory.
The programme is designed to improve access to healthcare, nutrition, early learning, childcare, water and sanitation for children aged zero to five.
The proposed borrowing comes against the backdrop of a sharp increase in Nigeria’s public debt.
Figures from the Debt Management Office showed that the country’s total public debt rose by N14.39 trillion, from N152.40 trillion in June 2025 to N166.79 trillion by June 2026.
Of the total, domestic debt stood at N91.59 trillion, while external debt amounted to N75.20 trillion.
Nigeria’s obligations to the World Bank Group also increased to $20.73 billion by June 2026, representing about 38 per cent of the country’s $54.52 billion external debt.
Economist Adewale Abimbola said concessional borrowing could support development if the funds were properly structured and effectively utilised.
He, however, stressed that the critical issue was not simply access to new loans but how the borrowed funds were deployed and whether they delivered measurable economic and social returns.
With the latest proposals, attention is likely to focus on the Federal Government’s debt-management strategy and its ability to ensure that additional borrowing translates into tangible improvements in infrastructure, livelihoods and human capital rather than adding pressure to an already expanding debt burden.
