FG Opens Talks With World Bank for $1.5bn New Loans as Debt Hits N166.79tn

The Federal Government has opened talks with the World Bank for three new loans totalling $1.5bn, just as Nigeria’s public debt climbed to a record N166.79tn at the end of June 2026.

According to World Bank documents, the money is split into three $500m facilities for climate resilience, social protection and early childhood development. All three would come from the International Development Association (IDA), the Bank’s concessional lending arm.

1. Climate resilience: An extra $500m for the ACReSAL project would raise its size from $700m to $1.2bn. The World Bank board is expected to consider it on October 29, 2026. It covers 19 northern states and the FCT, and will fund land restoration, flood control, irrigation and tree planting. The Bank says desertification affects about 43% of Nigeria’s land.
2. Social protection: A $500m loan for the HOPE-SP project would pay for cash transfers to poor households and upgrade the social registry. Approval is tentatively set for March 16, 2027. The Bank estimates that poverty rose from 40% in 2019 to 56% in 2023 and could hit 62.5% in 2026.
3. Early childhood development: Another $500m, expected for approval on March 15, 2027, would cover all 36 states and the FCT. It targets health, nutrition and early learning for children aged zero to five. The Bank says 40% of Nigerian children under five are stunted.

The debt picture: Public debt rose by N14.39tn in one year, from N152.40tn to N166.79tn, a 9.44% jump. In dollars, it went from $99.66bn to $120.93bn. Domestic debt is N91.59tn, while external debt is N75.20tn. Treasury bills alone grew by 52.64% to N19.48tn.

Nigeria now owes the World Bank Group $20.73bn, about 38% of its $54.52bn external debt.

Reactions: Atiku Abubakar has demanded a full reconciliation of the debt and an apology from the Tinubu administration over the hardship Nigerians face. Economist Adewale Abimbola, however, says World Bank loans are cheap and long-term, so what matters is how well the money is used.

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