The Federal Government is seeking $1.5 billion in fresh financing from the World Bank to support three new programmes in climate resilience, early childhood development and social protection.
Documents obtained from the World Bank show the financing is structured as three separate credits of $500 million each. They are currently at different stages of preparation.
All three are proposed as credits from the International Development Association, IDA, the Bank’s concessional lending arm. If approved, they will add $1.5 billion to Nigeria’s World Bank borrowing pipeline.
Three $500m credits scheduled for board review
The first facility is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes project, ACReSAL. The World Bank has scheduled it for board consideration on October 29, 2026.
The second is the $500 million Nigeria Early Childhood Development programme, slated for approval on March 15, 2027.
The third is the $500 million Household Prosperity and Empowerment – Social Protection Project, HOPE-SP, scheduled for March 16, 2027.
The ACReSAL request is an expansion of an existing programme. The project was initially approved in December 2021 with $700 million in World Bank financing. The new request would raise total Bank support for ACReSAL to $1.2 billion.
According to the appraisal document, "The Government of Nigeria has requested AF of $500 million to scale up demonstrated project results and strengthen the institutional, operational and financing arrangements needed to sustain integrated landscape management.”
A breakdown of the additional financing shows $310 million earmarked for dryland management, $165 million for community climate resilience and $25 million for institutional strengthening and project management.
The programme covers 19 northern states and the Federal Capital Territory. It is designed to address land degradation, water insecurity, climate vulnerability and declining agricultural productivity.
Early childhood and social protection
The early childhood programme is designed to increase access to an integrated package of services for children aged zero to five and their caregivers. It will run across all 36 states and the FCT.
World Bank data indicate the entire $500 million will be financed through an IDA credit with no financing gap. The package will cover health, nutrition, early learning and childcare.
The Bank noted that 40 per cent of children under five in Nigeria are stunted, fewer than half are developmentally on track, and only 36 per cent of children aged 36 to 59 months attend organised early learning.
The HOPE-SP loan is intended to build a more sustainable social assistance system for poor and vulnerable households. It will support targeted conditional and unconditional cash transfers, strengthen social protection institutions and gradually shift funding from external sources to federal and state budgets.
World Bank estimates put poverty at 62.5 per cent in 2026, up from 40 per cent in 2019 and 56 per cent in 2023.
Loans yet to be approved
The three project documents are still preparatory. This means they are proposed credits and not yet approved loans. Final approval will depend on the Bank’s board at the scheduled dates.
Rising debt profile
In July 2026, Nairametrics reported that the World Bank approved a $1.25 billion Development Policy Financing loan for Nigeria, despite public criticism over rising debt.
The approval came shortly after concerns were raised on social media about the country’s reliance on external borrowing. The Bank also unveiled a new six-year partnership strategy focused on private sector-led growth and job creation.
Nigeria’s public debt has continued to rise. Figures from the Debt Management Office show total public debt stock rose to N166.79 trillion as of June 30, 2026, from N159.35 trillion as of March 31, 2026. Domestic debt accounted for N91.59 trillion, or 54.91 per cent of the total.
In dollar terms, total public debt stood at $120.93 billion, comprising $54.52 billion in external debt and $66.41 billion in domestic debt.
External debt increased from $42.49 billion in December 2023 to $51.86 billion by December 2025, while domestic debt rose from N59.1 trillion to N89.4 trillion within the same period.
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