FG opens talks for fresh $1.5bn World Bank loans

The Federal Government is seeking $1.5 billion in fresh loans from the World Bank to support social protection, early childhood development and climate resilience programmes across Nigeria.

Documents from the World Bank show that the proposed financing consists of three separate $500 million loans. The projects are at different stages of preparation, with the first expected to be presented to the World Bank’s board for approval in October 2026.

The first facility is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL. The World Bank has scheduled the loan for board consideration on October 29, 2026.

The additional funding will increase the total World Bank financing for ACReSAL to $1.2 billion, following the initial $700 million approved in December 2021.

The programme operates in 19 northern states and the Federal Capital Territory. It focuses on tackling land degradation, water shortages, climate risks and declining agricultural productivity.

Of the proposed $500 million, $310 million will be used for dryland management, $165 million for community climate resilience and $25 million for institutional strengthening and project management.

The second proposed facility is another $500 million for Nigeria’s Early Childhood Development programme. The project is expected to provide support for children aged zero to five and their caregivers across all 36 states and the FCT.

The programme will focus on health, nutrition, early learning, childcare and other services aimed at improving the development of young children.

According to World Bank data, 40 per cent of Nigerian children under five are stunted, while fewer than half are considered to be developing as expected. Only 36 per cent of children between 36 and 59 months attend organised early learning programmes.

The third proposed loan is the $500 million Household Prosperity and Empowerment Social Protection Project, known as HOPE SP.

The programme is designed to strengthen Nigeria’s social protection system and provide support to poor and vulnerable households through targeted cash transfers.

It will also strengthen social protection institutions and gradually increase funding from federal and state governments rather than relying heavily on external financing.

The World Bank estimates that 62.5 per cent of Nigerians could be living in poverty in 2026, compared with 40 per cent in 2019 and 56 per cent in 2023.

The three proposed facilities are still being prepared and are not yet approved loans. If approved, they would add $1.5 billion to Nigeria’s World Bank financing pipeline.

The development comes amid concerns over Nigeria’s rising public debt. The country’s total public debt stood at N166.79 trillion as of June 30, 2026, up from N159.35 trillion as of March 31, 2026.

Of the total debt, domestic debt accounted for N91.59 trillion, representing 54.91 per cent, while the remaining portion was external debt.

In dollar terms, Nigeria’s total public debt stood at $120.93 billion, comprising $54.52 billion in external debt and $66.41 billion in domestic debt.