- Amid farmer/herder clashes
The World Bank has approved $500million in additional 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 an Semi-Arid Landscapes Project, will support climate adaptation, improved water management and agricultural productivity across 19 northern states and the Federal Capital Territory.
According to a statement posted on the World Bank’s website, the additional financing is expected to support the restoration of 1.4 million hectares of land and benefit approximately 6.6 million people by 2031.
The intervention will also cover watershed rehabilitation, erosion control and improved management of natural resources in communities vulnerable to climate-related disasters.
“The World Bank has approved $500million 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,” the bank said.
It added that the programme is expected to increase household incomes, improve vegetation and soil health, reduce flooding and associated fatalities, and strengthen agricultural productivity.
The additional financing will expand the existing ACReSAL project, which commenced in 2022 to address environmental degradation and climate vulnerabilities across northern Nigeria.
The World Bank said the programme has introduced sustainable landscape management practices across approximately 550,000 hectares and reached more than 4.4 million beneficiaries.
It added that the project has 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 funding would enable the government to scale up interventions that have delivered 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 said the project was designed to address interconnected challenges affecting rural communities, including land degradation, declining agricultural productivity, water insecurity and competition over natural resources.
Improved access to productive land and water resources is also expected to reduce pressure on natural resources, which contributes 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.
World Bank debt rises to $20.73bn
The latest approval comes about four months after the World Bank approved a $1.25bn financing package for Nigeria on June 29, 2026, under the Nigeria Actions for Investment and Jobs Acceleration programme.
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The earlier package comprised a $750m credit from the International Development Association and a $500m loan from the International Bank for Reconstruction and Development.
It was designed to support economic reforms, private investment and job creation.
The latest $500million approval also comes amid an increase in Nigeria’s outstanding obligations to the World Bank.
An analysis of figures published by the Debt Management Office showed that Nigeria’s debt to the institution rose from $14.34bn in March 2023, shortly before President Bola Tinubu assumed office, to $20.73bn as of June 30, 2026.
The increase of $6.39bn represents a rise of approximately 44.6 percent within the period.
The debt stock comprised $19.12bn owed to the International Development Association and $1.61bn to the International Bank for Reconstruction and Development.
The World Bank accounted for approximately 38.02 percent of Nigeria’s total external debt of $54.52bn at the end of June 2026, making it the country’s largest multilateral creditor.
The latest approval comes as the Federal Government is pursuing a separate $500m World Bank facility to establish an infrastructure financing platform under the proposed Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs (INFRAGROW) project.
The World Bank has listed May 25, 2027, as the estimated approval date for the proposed financing.
The proposed financing is separate from the latest ACReSAL approval and is expected to come just four days before the inauguration of Nigeria’s next president, scheduled for May 29, 2027.