FG Seeks Fresh $1.5bn World Bank Loans as Debt Hits N166.79tn

• The Federal Government is seeking three new World Bank facilities worth $500m each for climate resilience, social protection and early childhood development.

• The proposed borrowing comes as Nigeria’s public debt rose to a record N166.79tn at the end of June, up N7.44tn in three months.

• Treasury bills drove much of the increase in Federal Government domestic debt, with outstanding bills rising 52.64 percent year-on-year to N19.48tn.

September 28, () – The Federal Government is seeking fresh World Bank financing totalling $1.5bn as Nigeria’s public debt climbs to a record N166.79tn, raising the country’s borrowing obligations further.

Documents from the World Bank show that the proposed financing comprises three separate $500m facilities targeting climate resilience, social protection and early childhood development.

The fresh borrowing comes after the Debt Management Office reported that Nigeria’s public debt increased by N14.39tn, or 9.44 percent, from N152.40tn in June 2025 to N166.79tn at the end of June 2026.

The debt stock also rose by N7.44tn, or 4.67 percent, from N159.35tn in March.

Three new World Bank facilities

The most immediate proposal is a $500m additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL.

The World Bank has scheduled October 29, 2026, for estimated board consideration.

The additional financing would increase ACReSAL’s total funding from $700m to $1.2bn and support landscape restoration, watershed rehabilitation, flood and erosion management, irrigation, water harvesting and reforestation across 19 northern states and the Federal Capital Territory.

Another $500m facility is proposed for the Household Prosperity and Empowerment-Social Protection Project, or HOPE-SP.

The programme would expand targeted cash transfers, modernise the social registry, integrate the National Identification Number into the social protection information system and strengthen delivery at federal, state and local government levels.

The third $500m facility is for a Nigeria Early Childhood Development programme covering all 36 states and the FCT. It would support health, nutrition, early learning, childcare, water and sanitation services for children aged zero to five.

Both projects are currently expected to reach the World Bank board in March 2027.

Debt rises as treasury bills expand

The proposed loans come as domestic borrowing continues to account for the larger share of Nigeria’s debt.

Domestic debt stood at N91.59tn in June, representing 54.91 percent of the total, while external debt was N75.20tn. The Federal Government accounted for N152.77tn of the overall debt stock.

Treasury bills recorded one of the sharpest increases. Outstanding Nigerian Treasury Bills rose from N12.76tn in June 2025 to N19.48tn in June 2026, a 52.64 percent increase.

FGN bonds remained the largest component of domestic Federal Government debt at N64.84tn, accounting for 74.53 percent of the portfolio.

Meanwhile, Nigeria’s World Bank exposure reached $20.73bn by June 2026, including $19.12bn owed to the International Development Association.

Economist Adewale Abimbola said the key issue was not simply whether Nigeria should borrow, but how the funds were deployed.

“If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea,” he said. “Borrowing isn’t bad; what matters is utilisation.”

The proposed facilities therefore add to the government’s financing options, but also increase the importance of ensuring that new borrowing produces measurable economic and social returns.