FG Reportedly Seeking Fresh $1.5b Loan From World Bank

The Federal Government is seeking to obtain three fresh loans and discussions with the World Bank is reportedly underway in this respect.

Team@orientactualmags.com learned that the nation’s public debt hit N166.79 trillion in June 2026 and the new loans totaling $1.5 billion comprises three separate $500 million facilities for climate resilience, social protection and early childhood development.

The most immediate is a proposed $500 million additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project called ACReSAL and the World Bank will discuss matters that have to do with the loans on October 29, 2026.

The borrower is the Federal Republic of Nigeria, while the Federal Ministry of Environment is the implementing agency.

The financing will raise the size of ACReSAL from its previously approved $700 million to $1.2 billion, entirely financed through the International Development Association, the World Bank’s concessional financing arm.

The document said;

‘The Government of Nigeria has requested AF of $500 million to scale up demonstrated project results and strengthen the institutional, operational and financing arrangements needed to sustain integrated landscape management’.

The additional financing is expected to support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage, water harvesting and storage, reforestation and other climate-resilient interventions.

Of the additional $500 million, $310 million is proposed for dryland management, $165 million for community climate resilience and $25 million for institutional strengthening and project management.

ACReSAL currently operates across 19 northern states and the Federal Capital Territory focusing attention on land degradation, water insecurity, climate vulnerability and declining agricultural productivity.

The World Bank said desertification and land degradation affected an estimated 43 per cent of Nigeria’s land area, while failure to address climate change could reduce gross domestic product by about 2.6 per cent annually by 2030 and as much as 6.7 per cent by 2050.

The second proposed loan is another $500m IDA credit for the Household Prosperity and Empowerment-Social Protection Project.

Unlike the ACReSAL facility, the HOPE-SP project is at an earlier stage of preparation. Its technical design review is expected on October 30, 2026, while the World Bank has tentatively scheduled March 16, 2027, as its approval date. The Federal Ministry of Finance is listed as the borrower, while the Federal Ministry of Humanitarian Affairs and Poverty Reduction will implement the programme.

The project has an estimated cost of $500 million, comprising a $420 million results-based programme and an $80 million investment project financing component, with the entire financing expected from IDA.

The third proposed $500 million facility is for the Nigeria Early Childhood Development programme, with an estimated approval date of March 15, 2027, a day before the proposed HOPE-SP approval. Its technical design review is also scheduled to hold October 30, 2026.

The Federal Ministry of Finance is the borrower, while the Federal Ministry of Budget and Economic Planning is expected to implement the programme.

The project would cover all 36 states and the FCT and seek to improve access to an integrated package of health, nutrition, early learning, childcare, water and sanitation, and other services for children aged zero to five-Team@orientactualmags.com  Do you have any information you wish to share with us? Do you want us to cover your event or programme? Kindly send SMS to 08035023079,  08059100286, 09094171980 or get in touch via orientactualmag@gmail.com.  Thank you