World Bank building. Photo: World Bank
* The additional financing will support the restoration of 1.4 million hectares of land and benefit approximately 6.6 million people by 2031.
The World Bank has approved $500 million in financing for Nigeria to tackle flooding, restore degraded agricultural land and reduce conflicts between farmers, herders and rural communities across the northern part of the country.
The funding, approved under the Agro-Climatic Resilience in Semi-Arid Landscapes Project, is expected to strengthen climate resilience, improve water management and support agricultural productivity in 19 northern states and the Federal Capital Territory.
According to World Bank’s website on Wednesday, the additional financing will support the restoration of 1.4 million hectares of land and benefit approximately 6.6 million people by 2031.
The financing will also support watershed rehabilitation, erosion control and improved management of natural resources in communities vulnerable to climate-related disasters.
“The World Bank has approved $500m in additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes Project to help Nigeria scale up climate resilience, restore degraded landscapes, improve water management, and strengthen livelihoods across northern Nigeria.
“By 2031, this fund will help restore landscapes, rehabilitate watersheds, improve erosion and flood management, and build more resilient rural livelihoods, reaching 1.4 million hectares and benefiting 6.6 million people. This is expected to lead to an increase in household incomes, reduced farmer/community/herder conflicts, increases in vegetation health, reduced flooding and associated fatalities, improved soil health and agricultural productivity,” the statement read.
The World Bank explained that the intervention would build on the achievements of the existing ACReSAL project, which commenced in 2022 to address environmental degradation and climate vulnerabilities across northern Nigeria.
According to the bank, the programme has introduced sustainable landscape management practices on approximately 550,000 hectares and reached more than 4.4 million beneficiaries.
It added that the project had already exceeded its target for improved catchment management, providing a foundation for expanding climate adaptation investments.
The World Bank Country Director for Nigeria, Mathew Verghis, said the additional financing would enable the government to expand interventions that had demonstrated positive results in vulnerable communities.
“ACReSAL has demonstrated that investments in climate-resilient landscapes can improve livelihoods, strengthen food and water security, and help communities in the parts of Nigeria most vulnerable to climate shocks,” Verghis said.
“This additional financing will help scale up proven solutions, restore more degraded land, increase agricultural productivity, and strengthen institutions that can sustain these gains over the long term.”
The bank explained that the project was designed to address interconnected challenges affecting rural communities, including land degradation, declining agricultural productivity, water insecurity and competition over natural resources.
By improving access to productive land and water resources, the intervention is expected to reduce pressures contributing to disputes among farmers, herders and other community groups.
The ACReSAL Task Team Leader, Iganya Agene, said the additional financing would help translate earlier planning and institutional reforms into larger investments capable of improving economic opportunities.
“The additional financing reflects the strong results achieved under ACReSAL and will focus on translating the planning and institutional foundations already established under the project into larger-scale investments that improve climate adaptation, food security, water security, jobs, and economic opportunities,” Agene said.
The project is being implemented by the Federal Ministry of Environment in collaboration with the Federal Ministry of Water Resources and Sanitation and the Federal Ministry of Agriculture and Food Security.
It covers all 19 northern states and the FCT, where environmental degradation, flooding and pressure on agricultural resources continue to threaten livelihoods.
The World Bank explained that the additional funding would strengthen institutions responsible for managing natural resources while supporting sustainable economic activities in rural communities.
The intervention is also expected to improve food security by restoring agricultural landscapes, strengthening soil health and supporting more productive farming activities.
The latest approval comes about four months after the World Bank approved a $1.25bn financing package for Nigeria on 29 June, 2026, under the Nigeria Actions for Investment and Jobs Acceleration programme.
The earlier financing comprised a $750m credit from the International Development Association and a $500m loan from the International Bank for Reconstruction and Development, aimed at supporting economic reforms, private investment and job creation.
The fresh $500m approval also comes amid a sustained increase in Nigeria’s indebtedness to the World Bank under President Bola Tinubu.
An analysis of figures published by the Debt Management Office showed that Nigeria’s outstanding debt to the World Bank rose from $14.34bn in March 2023, shortly before Tinubu assumed office, to $20.73bn as of 30 June, 2026.
This represents an increase of approximately $6.39bn, or 44.6 per cent, within the period.
The latest debt stock comprised $19.12bn owed to the International Development Association and $1.61bn to the International Bank for Reconstruction and Development.
Consequently, the World Bank accounted for approximately 38.02 per cent of Nigeria’s total external debt stock of $54.52bn at the end of June 2026, making it the country’s largest multilateral creditor.
