Nigeria Seeks Fresh $1.5bn World Bank Loans for Climate, Social Protection

By Adedapo Adesanya

Nigeria is seeking $1.5 billion in fresh financing from the World Bank to fund climate resilience, early childhood development and social protection programmes.

The proposed financing comprises three separate $500 million credits from the World Bank’s International Development Association (IDA), according to reports on Monday.

The first facility is an additional $500 million financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL, with the World Bank’s board scheduled to consider the proposal on October 29, 2026.

The additional financing would increase total World Bank funding for ACReSAL to $1.2 billion, following the approval of an initial $700 million project in December 2021.

Under the proposed additional financing, $310 million would be allocated to dryland management, $165 million to community climate resilience and $25 million to institutional strengthening and project management.

The programme operates across 19 northern states and the Federal Capital Territory, with interventions focused on land degradation, water insecurity, climate vulnerability and declining agricultural productivity.

Another $500 million facility is proposed for Nigeria’s Early Childhood Development programme, which is expected to go before the World Bank board on March 15, 2027.

The programme is designed to expand access to integrated services for children aged zero to five and their caregivers across Nigeria’s 36 states and the FCT, covering health, nutrition, early learning and childcare.

The third proposed facility is the $500 million Household Prosperity and Empowerment – Social Protection Project, known as HOPE-SP, scheduled for board consideration on March 16, 2027.

The project is aimed at strengthening Nigeria’s social assistance system through targeted conditional and unconditional cash transfers, improved social protection institutions and greater financing from federal and state budgets.

The World Bank estimates that 62.5 per cent of Nigerians could be living in poverty in 2026, compared with 56 per cent in 2023 and 40 per cent in 2019.

The proposed facilities come amid a rise in Nigeria’s public debt, with data from the Debt Management Office (DMO) showing that the country’s total public debt stood at N166.79 trillion as of June 30, 2026, up from N159.35 trillion as of March 31.

Of the June debt stock, domestic debt accounted for N91.59 trillion, while external debt stood at $54.52 billion in dollar terms.

The three proposed World Bank facilities are still at the preparation stage and would only increase Nigeria’s World Bank-backed financing pipeline if they receive final approval.