Nigeria Seeks Fresh $1.5 Billion World Bank Financing as Debt Hits ₦166.79 Trillion
The Federal Government of Nigeria is in discussions with the World Bank for fresh financing worth $1.5 billion, as the country’s total public debt climbed to ₦166.79 trillion at the end of June 2026.
The proposed financing, which is equivalent to more than ₦2 trillion, is designed to support programmes covering social protection, climate resilience and early childhood development.
However, the proposed borrowing comes amid continued economic pressure on households, with many Nigerians facing high living costs and concerns about employment and household incomes.
According to World Bank documents reported by multiple Nigerian news organisations, the proposed $1.5 billion package is made up of three separate $500 million facilities, rather than one single loan.
One of the facilities is an additional $500 million financing for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project.
The World Bank has scheduled October 29, 2026, as the tentative date for its board to consider the proposal. If approved, the additional financing would increase the overall size of the ACReSAL programme from $700 million to $1.2 billion.
Another proposed $500 million facility is focused on social protection, including measures intended to strengthen support for vulnerable households.
The third proposed facility is aimed at early childhood development, with planned interventions in areas including health, nutrition, early learning, childcare, water and sanitation.
The proposed borrowing comes after the Debt Management Office reported that Nigeria's total public debt increased from ₦152.40 trillion in June 2025 to ₦166.79 trillion in June 2026.
That represents an increase of ₦14.39 trillion, or 9.44 per cent, within one year. Between March and June 2026 alone, the debt stock increased from ₦159.35 trillion to ₦166.79 trillion.
Nigeria already owed the World Bank Group about $20.73 billion as of June 2026, according to figures cited from the country's debt data.
For the Federal Government, World Bank financing is intended to support development programmes and social interventions.
The government has previously defended World Bank-backed financing as part of efforts to support economic reforms, social protection and human-capital development. In July 2026, it unveiled World Bank-supported programmes including NG-CARES, SOLID and HOPE, covering areas such as livelihoods, vulnerable households, healthcare and education.
The latest proposals, however, are not yet approved loans. Their implementation will depend on the World Bank's approval process and the conditions attached to the facilities.
As discussions continue, attention is likely to remain on how the proposed funds would be used, the projects they would finance and the impact on Nigeria's overall debt position.