The Federal Government is in discussions with the World Bank over three proposed financing facilities worth a combined $1.5 billion, even as Nigeria’s public debt reached N166.79 trillion by the end of June 2026.
The proposed facilities, each valued at $500 million, are expected to focus on climate resilience, social protection and early childhood development.
Details contained in documents from the World Bank show that the first of the proposed facilities is additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, popularly known as ACReSAL.
The World Bank has scheduled October 29, 2026, as the estimated date for its board to consider the proposed $500 million additional financing.
Nigeria would be the borrower, while the Federal Ministry of Environment would serve as the implementing agency.
ACReSAL funding to rise to $1.2bn
If approved, the additional financing would increase the total size of the ACReSAL project from $700 million to $1.2 billion.
The entire additional facility is proposed to be financed through the International Development Association, the World Bank’s concessional financing arm.
According to the project document, the Nigerian Government requested the additional funding to expand results already achieved under the programme and strengthen the institutions and financing arrangements required to maintain integrated landscape management.
The proposed financing is expected to support several climate and environmental interventions across vulnerable communities.
These include restoration of degraded landscapes, rehabilitation of watersheds, erosion and flood control, irrigation and drainage infrastructure, water harvesting and storage, as well as reforestation.
How the proposed $500m could be allocated
The World Bank document proposes that the additional $500 million would be distributed across three broad areas.
About $310 million would go towards dryland management, while $165 million would support community climate resilience.
Another $25 million has been earmarked for institutional strengthening and project management.
The proposed loans come against the backdrop of rising public debt, with Nigeria’s total public debt reported at N166.79 trillion as of June 2026.
The other two proposed $500 million facilities are expected to focus on social protection and early childhood development, although further details on those facilities were not contained in the information currently available.
