The Federal Government is seeking three new World Bank loans worth a combined $1.5 billion as Nigeria’s total public debt rose to N166.79 trillion by June 2026.

This is coming amid growing concerns over the nation’s rising debt profile and its implications for fiscal sustainability and economic stability.

The proposed facilities, according to findings, are targeted at strengthening climate resilience, expanding social protection programmes and boosting early childhood development across the country.

Documents seen indicate that the three new loans are at various stages of negotiation and approval by the World Bank board.

One of the loans is expected to support Nigeria’s climate adaptation and resilience efforts, particularly in the face of flooding, desertification and other environmental challenges affecting several states.

Another facility is designed to scale up the National Social Safety Net Programme which provides cash transfers and other support to vulnerable households and poor Nigerians.

The third loan is earmarked for early childhood development, focusing on nutrition, basic education, health and social welfare for children under the age of five.

Officials of the Federal Government said the new borrowings are necessary to address critical development gaps and to cushion the effects of ongoing economic reforms on vulnerable segments of the population.

They explained that the loans are concessional, with low interest rates and long repayment periods, making them more favourable than commercial borrowings.

The move comes as Nigeria’s total public debt stock hit N166.79 trillion as of June 2026, according to data from the Debt Management Office, DMO.

The figure comprises domestic and external debts owed by the Federal Government, the 36 states and the Federal Capital Territory, FCT.

Analysts said the debt stock has risen sharply in recent months due to fresh borrowings, naira depreciation and the securitization of Ways and Means advances from the Central Bank of Nigeria.

As of June 2026, Nigeria’s total exposure to the World Bank alone stood at $20.73 billion, making the Bretton Woods institution one of the country’s largest multilateral creditors.

This includes loans from the International Development Association, IDA, and the International Bank for Reconstruction and Development, IBRD, which fund various development projects across sectors.

The Federal Government has in recent years increased borrowing from multilateral lenders to fund budget deficits, infrastructure projects and social intervention programmes.

While government insists that borrowing is needed to bridge infrastructure gaps and stimulate growth, economists have warned that rising debt service costs are crowding out spending on health, education and other critical sectors.

Data from the DMO shows that debt servicing gulped a significant portion of Federal Government revenue in the first half of 2026, raising questions about debt sustainability.

Some financial experts have urged the government to improve domestic revenue mobilisation through tax reforms, blocking leakages and expanding the non-oil revenue base to reduce dependence on borrowing.

Others said that beyond borrowing, the government must ensure that loans are judiciously utilized and tied to projects with clear economic returns and measurable impact on citizens.

The World Bank on its part has continued to support Nigeria’s reforms, noting that investments in climate resilience, social protection and human capital are crucial for long-term growth and poverty reduction.

It said the proposed $1.5 billion loans will help Nigeria build resilience to climate shocks, protect poor and vulnerable households from economic hardship, and improve human capital outcomes.

The Bank added that its financing is accompanied by technical assistance to strengthen implementation, transparency and accountability in project execution.

Meanwhile, civil society groups and some members of the National Assembly have called for greater scrutiny of new borrowings to ensure that they do not worsen the already high debt burden.

They urged the Federal Government to publish full details of loan terms, conditions and repayment plans to allow for public oversight.

As Nigerians await the final approval of the new World Bank facilities, many will be watching to see how the government balances the need for development financing with the urgent task of managing a debt stock that has now crossed N166 trillion.