Nigeria seeks $1.5bn in new World Bank loans as public debt hits N166.79tn, with funds targeting climate resilience, social protection and children.
The Federal Government is seeking fresh $1.5 billion World Bank loans as Nigeria’s public debt hits a record N166.79 trillion. The proposed loans will fund climate resilience, social protection and early childhood development. Talks are ongoing with the World Bank on the three facilities.
One $500 million facility will support the Agro-Climatic Resilience in Semi-Arid Landscapes project. ACReSAL focuses on land restoration, flood control, erosion prevention and irrigation. It will also improve water management across northern Nigeria. If approved, the extra funding will push the project’s total financing to $1.2 billion.
Another $500 million loan targets the Household Prosperity and Empowerment-Social Protection programme. The project will support poor and vulnerable households through cash transfers. It will also improve Nigeria’s social registry and strengthen welfare systems.
Meanwhile, a separate $500 million facility will fund early childhood development across all 36 states and the FCT. The programme will cover healthcare, nutrition, learning, childcare, water and sanitation for children aged zero to five.
The fresh borrowing comes as Nigeria’s debt burden continues to grow. Debt Management Office figures show public debt rose from N152.40 trillion in June 2025 to N166.79 trillion in June 2026. Domestic debt stood at N91.59 trillion, while external debt reached N75.20 trillion.
Nigeria also owed the World Bank Group $20.73 billion by June 2026. Economist Adewale Abimbola said concessional loans can support development when properly managed.
“Borrowing isn’t bad; what matters is utilisation,” he said.
