FG IN TALKS FOR $1.5BN WORLD BANK FINANCING AS NIGERIA’S DEBT HITS ₦166.79TN

By: Pen Blog Media.

Date: Monday, 28th Sep., 2026 | 16th Rabī’ul Akhīr, 1448 AH.

Nigeria's Debt Hits ₦166.79tn as of September, 2026

THE Federal Government is in discussions with the World Bank over three proposed financing facilities worth a combined $1.5 billion, as Nigeria's public debt rose to ₦166.79 trillion at the end of June 2026.

The proposed World Bank financing, contained in project documents, comprises three separate facilities of $500 million each targeting climate resilience, social protection and early childhood development.

The proposals are at different stages of preparation and have not all received final approval from the World Bank.

The most advanced is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL.

According to the project information reported by The PUNCH, the World Bank has tentatively scheduled October 29, 2026, for consideration of the additional financing by its Board. If approved, the facility would increase ACReSAL's total financing from $700 million to $1.2 billion.

The proposed additional financing would support activities including landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage, water harvesting, reforestation and other climate-resilience measures.

A second proposed $500 million facility is for the Household Prosperity and Empowerment-Social Protection Project, known as HOPE-SP.

The proposed programme is designed to strengthen social protection for poor and vulnerable households, including through targeted cash transfers, improvements to the national social registry and stronger coordination of social assistance programmes.

The third proposed $500 million facility is for a Nigeria Early Childhood Development programme, which is intended to improve access to health, nutrition, early learning, childcare, water and sanitation services for children from birth to five years.

Both the HOPE-SP and Early Childhood Development proposals remain under preparation, with tentative consideration dates in March 2027.

NIGERIA'S PUBLIC DEBT RISES TO ₦166.79TN

The proposed financing comes as the country's public debt continues to rise.

The latest figures released by the Debt Management Office (DMO) show that Nigeria's total public debt stood at ₦166.79 trillion as of June 30, 2026.

The figure represents an increase of ₦7.44 trillion, or approximately 4.67 per cent, from the ₦159.35 trillion recorded at the end of March 2026.

Compared with the ₦152.40 trillion recorded in June 2025, the latest figure represents a year-on-year increase of about ₦14.39 trillion, or 9.44 per cent.

Domestic obligations accounted for ₦91.59 trillion, representing 54.91 per cent of the total debt stock, while external debt stood at ₦75.20 trillion, or 45.09 per cent.

The Federal Government accounted for approximately ₦152.77 trillion of the total public debt, while the 36 states and the Federal Capital Territory accounted for about ₦14.01 trillion.

WORLD BANK EXPOSURE

Nigeria already has significant financial exposure to the World Bank Group.

World Bank financing data shows that, as of June 30, 2026, Nigeria had approximately $19.14 billion in International Development Association (IDA) exposure and $1.84 billion in International Bank for Reconstruction and Development (IBRD) exposure.

The World Bank has also approved several major financing operations for Nigeria in 2026, including a $500 million IDA credit for the Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW) Project in March.

The bank's financing database also records $500 million and $750 million operations under the Nigeria Actions for Investment and Jobs Acceleration programme, approved in June 2026.

However, the latest $1.5 billion proposal should not be treated as an additional ₦1.5 billion-equivalent debt already added to Nigeria's debt stock.

The three facilities remain subject to the World Bank's respective preparation, review and approval processes.

If approved, the financing would support programmes focused on climate resilience, social protection and early childhood development.

The development comes amid renewed public discussion about Nigeria's borrowing needs, debt levels and how borrowed funds are being deployed across development programmes.