The Federal Government has opened talks with the World Bank for a fresh $1.5 billion loan to fund climate, poverty, and health programs, even as the total public debt of Nigeria climbs to N166.79 trillion.
According to World Bank documents, the proposed $1.5 billion package is split into three equal parts of $500 million each. The funds will focus on climate resilience, social protection for vulnerable households, and early childhood development.
The first $500 million will go toward the Agro-Climatic Resilience in Semi-Arid Landscapes project to tackle desertification, flooding, and farming challenges across 19 northern states and the FCT.
Another $500 million is meant for a social protection project aimed at providing cash transfers and social support to poor Nigerians. The World Bank noted that this intervention is urgent, estimating that the number of Nigerians living in poverty could jump to 62.5% in 2026 due to inflation and recent economic reforms.
The final $500 million will fund a nationwide early childhood development program, aimed at improving health, nutrition, and early education for children under five, especially in rural areas where malnutrition remains high.
This new borrowing plan comes at a time when Nigeria’s debt profile is growing fast. New data from the Debt Management Office shows that total public debt reached N166.79 trillion by the end of June 2026, a jump of over N14 trillion in just one year.
Domestic borrowing through Treasury bills and government bonds accounts for about 55% of the total debt. Externally, the World Bank is Nigeria’s largest creditor, with the country owing the institution over $20 billion.
The rising debt has drawn criticism from political opposition leaders and economic experts. Former Vice-President Atiku Abubakar demanded a full breakdown of the new loans, asking the government to explain how the funds will be used and address the current economic hardship facing citizens.
However, Lagos-based economist Adewale Abimbola pointed out that World Bank loans usually come with low interest rates and longer repayment periods.
He stressed that as long as the government invests the money into projects that grow the economy, the loans make financial sense.
The World Bank board is expected to review the climate resilience loan by late October 2026, while the poverty and health funds are scheduled for approval in early 2027.
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