Tinubu Government has sought $1.5bn World Bank loans as Public Debt hit record N166.79tn.
NewsOnline Nigeria reports that the Federal Government has opened discussions with the World Bank for three new loans totalling $1.5bn, even as Nigeria’s public debt rose to a record N166.79tn at the end of June 2026.
Documents from the World Bank show that the proposed financing consists of three separate $500m facilities targeting climate resilience, social protection and early childhood development.
The first and most advanced facility is a proposed $500m additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL.
The World Bank has scheduled October 29, 2026, as the estimated date for consideration of the additional financing by its board. The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Environment will implement the project.
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The additional financing would increase ACReSAL’s total size from $700m to $1.2bn, with the financing coming entirely from the International Development Association, the World Bank’s concessional financing arm.
The World Bank said the Nigerian government requested the additional funding to scale up project results and strengthen institutional, operational and financing arrangements for integrated landscape management.
The financing would support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage, water harvesting and storage, reforestation and other climate-resilience measures.
Of the proposed $500m, $310m would be allocated to dryland management, $165m to community climate resilience and $25m to institutional strengthening and project management.
ACReSAL currently operates across 19 northern states and the Federal Capital Territory, targeting land degradation, water insecurity, climate vulnerability and declining agricultural productivity.
The World Bank said desertification and land degradation affect an estimated 43 per cent of Nigeria’s land area.
World Bank proposes $500m social protection loan
The second proposed facility is a $500m IDA credit for the Household Prosperity and Empowerment-Social Protection Project, known as HOPE-SP.
The project is still at an earlier preparation stage, with its technical design review expected on October 30, 2026. The World Bank has tentatively scheduled March 16, 2027, for board consideration.
The Federal Ministry of Finance is listed as the borrower, while the Federal Ministry of Humanitarian Affairs and Poverty Reduction will implement the programme.
The proposed financing comprises a $420m results-based programme and an $80m investment project financing component.
The programme is designed to establish regular social assistance for poor and vulnerable households while gradually shifting financing responsibility to federal and state governments.
It would support targeted unconditional and conditional cash transfers, modernisation of the social registry, integration of the National Identification Number into the social protection information system and stronger implementation capacity at federal, state and local government levels.
The World Bank said Nigeria spent only 0.14 per cent of GDP on social safety-net programmes in 2021, compared with a global average of 1.5 per cent and 1.2 per cent among lower-middle-income countries.
The lender also estimated that the proportion of Nigerians living in poverty increased from 40 per cent in 2019 to 56 per cent in 2023 and could reach 62.5 per cent in 2026.
Third $500m loan targets early childhood development
The third proposed facility is another $500m IDA credit for the Nigeria Early Childhood Development programme.
The World Bank has scheduled its technical design review for October 30, 2026, with March 15, 2027, set as the estimated approval date.
The Federal Ministry of Finance would be the borrower, while the Federal Ministry of Budget and Economic Planning is expected to implement the programme.
The project would cover all 36 states and the FCT and focus on children aged zero to five.
It would seek to improve access to healthcare, nutrition, early learning, childcare, water and sanitation and other essential services.
The proposed $500m financing comprises a $400m programme-for-results component and $100m investment project financing.
The World Bank said the intervention was necessary because 40 per cent of Nigerian children under five are stunted, while fewer than half are developmentally on track and only 36 per cent of children aged 36 to 59 months attend organised early learning.
Nigeria’s public debt rises to N166.79tn
The proposed borrowing comes as Nigeria’s public debt reached a record N166.79tn at the end of June 2026, according to figures from the Debt Management Office.
The debt stock increased by N14.39tn from N152.40tn in June 2025, representing a 9.44 per cent year-on-year increase.
In dollar terms, public debt increased by $21.27bn, or 21.35 per cent, from $99.66bn to $120.93bn during the same period.
On a quarterly basis, total public debt rose by N7.44tn, or 4.67 per cent, from N159.35tn in March 2026 to N166.79tn in June.
Domestic debt stood at N91.59tn, representing 54.91 per cent of total public debt, while external debt amounted to N75.20tn.
Federal Government domestic debt increased from N76.59tn in June 2025 to N87tn in June 2026.
Treasury bills accounted for a significant portion of the increase, rising from N12.76tn to N19.48tn within one year. That represents an increase of N6.72tn, or 52.64 per cent.
FGN bonds remained the largest component of domestic debt at N64.84tn.
Nigeria’s World Bank debt reaches $20.73bn
The DMO data also showed that Nigeria’s outstanding debt to the World Bank Group reached $20.73bn at the end of June 2026.
The figure comprised $19.12bn owed to IDA and $1.61bn owed to the International Bank for Reconstruction and Development.
World Bank exposure increased by $1.34bn, or 6.93 per cent, from $19.39bn in June 2025.
At $20.73bn, World Bank obligations accounted for about 38 per cent of Nigeria’s $54.52bn external debt stock.
Nigeria’s total multilateral external debt stood at $24.76bn, meaning World Bank obligations accounted for a substantial portion of the country’s multilateral liabilities.
Commercial debt stood at $23.16bn, while bilateral debt was $6.61bn.
Eurobond obligations accounted for $18.55bn of Nigeria’s external debt.
Economist weighs new borrowing
Reacting to the proposed World Bank facilities, Lagos-based economist Adewale Abimbola said borrowing from multilateral institutions could be beneficial because such financing is generally concessional and comes with longer repayment periods.
He said the key issue was how the funds would be deployed.
“If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea,” Abimbola said.
“Borrowing isn’t bad; what matters is utilisation.”
The proposed facilities therefore come at a time when the Federal Government is seeking additional financing for social protection, climate adaptation and human-capital development, while Nigeria’s overall debt burden continues to increase.
