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The bank explained that the additional financing would build on the achievements of the existing ACReSAL project, which commenced in 2022 to address environmental degradation and climate vulnerabilities across northern Nigeria.
KaNo —
The World Bank has approved $500m 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 in Semi-Arid Landscapes (ACReSAL) Project, is expected to strengthen climate resilience, improve water management and boost agricultural productivity in 19 northern states and the Federal Capital Territory.
According to a statement available on the the World Bank’s website on Wednesday, the additional financing will support the restoration of 1.4 million hectares of degraded land and benefit approximately 6.6 million people by 2031.
The intervention will also support watershed rehabilitation, erosion control and improved management of natural resources in communities increasingly exposed to climate-related disasters.
The World Bank said the funding would help Nigeria scale up climate adaptation measures, restore degraded landscapes, improve water management and strengthen livelihoods across northern communities.
“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 bank explained that the additional financing 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 institution, the programme has introduced sustainable landscape management practices on approximately 550,000 hectares of land and reached more than 4.4 million beneficiaries.
It added that the project had exceeded its target for improved catchment management, providing a foundation for expanding climate adaptation investments across the region.
The World Bank Country Director for Nigeria, Mathew Verghis, said the additional financing would enable the Federal 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,” he added.
The bank noted that the project was designed to address interconnected challenges confronting rural communities, including land degradation, declining agricultural productivity, water insecurity and competition over natural resources.
It explained that the deterioration of agricultural landscapes and increasing pressure on available water resources had heightened competition among farmers, herders and other rural community groups.
By improving access to productive land and water resources, the intervention is expected to ease some of the pressures contributing to disputes and conflicts among these 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 expanding 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, recurrent flooding and increasing pressure on agricultural resources continue to threaten livelihoods.
The World Bank said the additional funding would also strengthen institutions responsible for managing natural resources while supporting sustainable economic activities in rural communities.
The intervention is expected to contribute to improved food security through the restoration of agricultural landscapes, enhancement of soil health and support for more productive farming practices.
The funding comes amid growing concerns over the effects of climate change on agriculture and rural livelihoods in northern Nigeria, where flooding, erosion, land degradation and water scarcity have continued to affect farming activities and food production.
Meanwhile, 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.
The earlier financing comprised a $750m credit from the International Development Association and a $500m loan from the International Bank for Reconstruction and Development.
The package was designed to support economic reforms, encourage private sector investment and accelerate 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 June 30, 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.
The increasing debt exposure has continued to draw attention to the Federal Government’s borrowing activities and the need to ensure that loans translate into measurable improvements in infrastructure, economic productivity and citizens’ living conditions.
The PUNCH had earlier reported that the Federal Government was seeking another $500m loan from the World Bank to establish an infrastructure financing platform.
The proposed financing was scheduled for approval on May 25, 2027, just four days before the inauguration of Nigeria’s next president.
