The Federal Government is in discussions with the World Bank for three new financing facilities worth a combined $1.5 billion, even as Nigeria’s public debt climbed to ₦166.79 trillion at the end of June 2026.
According to documents from the World Bank cited by Nigerian media, the proposed financing consists of three separate $500 million facilities targeting climate resilience, social protection and early childhood development.
The most advanced of the proposed facilities is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project.
The World Bank is expected to consider the additional ACReSAL financing on October 29, 2026. If approved, the facility would increase the project’s total World Bank financing from $700 million to $1.2 billion.
ACReSAL operates across 19 northern states and the Federal Capital Territory, with programmes focused on issues including land degradation, water insecurity, climate vulnerability and declining agricultural productivity.
The proposed financing comes against the backdrop of rising government debt.
Nigeria’s public debt stood at ₦166.79 trillion as of June 30, 2026, representing an increase from the previous quarter. Reports citing Debt Management Office figures put domestic debt at about ₦91.59 trillion and external debt at approximately ₦75.20 trillion.
The proposed World Bank facilities are concessional loans through the International Development Association, the World Bank’s financing arm for lower-income countries.
The development has already attracted political scrutiny. Former Vice-President Atiku Abubakar questioned the government’s plan to seek additional borrowing while public debt is at its current level, calling for greater accountability over existing borrowing. His comments represent a political criticism of the government’s borrowing strategy rather than an indication that the proposed facilities have already been approved.
The latest financing proposals therefore remain subject to the World Bank’s approval processes. The projects’ stated objectives include addressing climate-related vulnerabilities, strengthening social protection and supporting early childhood development.
