Nigeria: Inside Govt's Fresh $1.5bn World Bank Loan
[Daily Trust] The Federal Government is seeking $1.5bn in fresh financing from the World Bank to expand social protection, improve early childhood development and scale up climate-resilient interventions, even as Nigeria's total public debt climbs to N166.79tn.
The Nigerian government has requested $1.5 billion in fresh financing from the World Bank to bolster social protection, boost early childhood development, and bolster climate-resilient initiatives. Documents obtained by Daily Trust reveal that the financing consists of three distinct $500 million International Development Association credits, rather than a single $1.5 billion loan.
The proposed borrowing coincides with a surge in Nigeria's public debt, which has swelled by N79.41 trillion over three years, from N87.38 trillion in June 2023 to N166.79 trillion by the end of June 2026. This represents a 47.61% increase in three years, translating to a $21.27 billion rise, from $111.34 billion to $120.93 billion within the same span.
The heightened debt stock also elevates Nigeria's exposure to the World Bank Group, which has risen to $20.73 billion by the end of June 2026, accounting for roughly 38% of the country's $54.52 billion external debt. The World Bank Group's share of Nigeria's external debt, coupled with the proposed new borrowing, underscores the mounting financial strain faced by the nation.
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