The Federal Government has begun discussions with the World Bank over three new loans worth a total of $1.5 billion, as Nigeria’s public debt rose to a record N166.79 trillion by the end of June 2026.
According to World Bank documents, the proposed financing includes three separate $500 million facilities aimed at climate resilience, social protection, and early childhood development.
The first loan is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project. The World Bank has scheduled October 29, 2026, for its board to consider the request. The project is being implemented by the Federal Ministry of Environment.
If approved, the financing will increase ACReSAL’s total funding from $700 million to $1.2 billion, fully financed through the International Development Association (IDA), the World Bank’s concessional lending arm.
The World Bank said the Nigerian government requested the additional funding to expand the project’s achievements and strengthen long-term landscape management across the country.
The new funding will support land restoration, watershed rehabilitation, erosion and flood control, irrigation, water harvesting and storage, reforestation, and other climate-resilient interventions. Of the proposed amount, $310 million is earmarked for dryland management, $165 million for community climate resilience, and $25 million for institutional strengthening and project management.
ACReSAL currently operates in 19 northern states and the Federal Capital Territory, addressing desertification, land degradation, water insecurity, and declining agricultural productivity.
The World Bank noted that about 43 percent of Nigeria’s land area is affected by desertification and land degradation, warning that climate change could reduce the country’s GDP by 2.6 percent annually by 2030 and 6.7 percent by 2050 if left unaddressed.
The second proposed facility is a $500 million IDA credit for the Household Prosperity and Empowerment–Social Protection (HOPE-SP) project. The programme is still in its preparation stage, with a technical design review expected on October 30, 2026, and tentative board approval slated for March 16, 2027.
The HOPE-SP project will be coordinated by the Federal Ministry of Humanitarian Affairs and Poverty Reduction, while the Federal Ministry of Finance is listed as the borrower. It is expected to include a $420 million results-based programme and an $80 million investment financing component, with the entire funding to come from the IDA.
The proposed loans come at a time when Nigeria’s rising debt profile continues to attract public attention, following the latest figures showing the country’s public debt has reached an all-time high of N166.79 trillion.
