Nigeria Set to Receive $500 Million World Bank Loan Amid Rising Debt

The World Bank is expected to approve a $500 million loan to Nigeria next month, targeting improvements in agriculture and key value chains across selected states.

Project documents indicate the loan could be approved on March 30, 2026. The entire $500 million will come from the International Development Association (IDA), the World Bank’s concessional lending arm, under a credit facility.

The Federal Republic of Nigeria is listed as the borrower, with the Federal Ministry of Agriculture and Food Security leading implementation alongside participating state governments. The initiative aims to boost smallholder productivity, integrate farmers into competitive value chains, modernize production systems, improve policy frameworks, and attract private investment in agricultural inputs. A dedicated component will also focus on project coordination and monitoring.

The loan comes as Nigeria’s external debt continues to grow. Data from the International Development Association show funding to Nigeria increased by $1.9 billion in a single year, reaching $18.7 billion by December 31, 2025. According to the Debt Management Office, Nigeria’s total external debt stood at $46.98 billion as of June 30, 2025, with the World Bank Group accounting for $19.39 billion.