FG Seeks $1.5bn World Bank Loan to Fund Social Protection, Child Development, Climate Resilience Projects

The federal government has opened discussions with the World Bank on three new loans totalling $1.5 billion to fund social protection, early childhood development, and climate resilience projects across Nigeria.

According to documents obtained by TheCable on Tuesday, the proposed financing comprises $500 million each for the household prosperity and empowerment – social protection project (HOPE-SP), the Nigeria early childhood development project, and additional financing for the agro-climatic resilience in semi-arid landscapes (ACReSAL) project.

While three proposals are at different stages of preparation, the World Bank’s board is expected to consider the ACReSAL additional financing in October 2026, while the other two projects are scheduled for board approval in March 2027.

According to the document, the World Bank is proposing an additional $500 million for ACReSAL to scale up sustainable landscape management, watershed rehabilitation and climate resilience across 19 northern states and the Federal Capital Territory (FCT).

The additional financing would bring the project’s cumulative financing to $1.2 billion.

The project is expected to focus on addressing land degradation, climate vulnerability, food insecurity and resource-use pressures through watershed planning, dryland management and community resilience measures.

It will also support the expansion of the community revolving fund and digital agricultural extension platforms, the World Bank document said, noting that the additional financing is being implemented through the ‘investment project financing under the federal ministry of environment.

The World Bank set October 29, 2026, as the potential date for board consideration of the additional financing.

$500 MILLION FOR EARLY CHILDHOOD DEVELOPMENT

The bank is also preparing a $500 million Nigeria early childhood development project to improve access to integrated early childhood development services for children aged zero to five and their caregivers.

The project will cover all 36 states and the FCT, the World Bank said.

It will focus on governance, the organisation noted, strengthening the frontline workforce and improving access to nurturing care, including health, nutrition and early learning services.

The document disclosed that the project is structured as a programme-for-results, with disbursements linked to verified results and expected to undergo technical design review on October 30, 2026, while March 15, 2027, is the estimated date for board approval.

The loan document also stated that fewer than half of children are developmentally on track, while only 36 percent of children aged 36 to 59 months attend organised early learning.

Also, the Washington-based institution said it is also preparing a $500 million HOPE-SP project to establish and institutionalise social assistance for extremely poor and vulnerable households.

According to the document, the operation comprises a $420 million results-based programme and an $80 million investment project financing component.

“It will support targeted cash transfers, expansion of the Nigerian Social Protection Information System (NISPIS), including stronger identification systems, and the establishment of social protection units at state and local government levels,” the document reads in part.

The World Bank said the project is designed to strengthen Nigeria’s social protection system and improve its ability to respond to economic shocks affecting vulnerable households.

The World Bank also said it scheduled October 30, 2026, for the estimated technical design review of the project, with board approval expected on March 16, 2027.

On September 27, Nigeria’s public debt climbed to a record N166.79 trillion at the end of June 2026.