World Bank Gives Nigeria Fresh $500m Loan

The World Bank has approved an additional $500m financing for Nigeria to address flooding, revive damaged agricultural land and reduce conflicts between farmers, herders and rural communities in the northern region of the country.

The funding is expected to improve environmental conditions, strengthen water management and increase agricultural production across 19 northern states and the Federal Capital Territory.

The approval was made under the Agro-Climatic Resilience in Semi-Arid Landscapes Project, also known as ACReSAL, which is aimed at helping communities manage the effects of climate change and other environmental challenges.

Details of the latest approval were contained in a statement published on the World Bank’s website on Wednesday.

The bank said the additional funding would support the restoration of 1.4 million hectares of degraded land and provide benefits to approximately 6.6 million people by 2031.

The project will also cover the rehabilitation of watersheds, prevention of soil erosion and improved management of natural resources in areas exposed to flooding and other climate-related disasters.

The intervention is expected to improve the living conditions of rural residents by restoring agricultural land, increasing household income and creating better opportunities for farming communities.

It is also designed to reduce flooding and related deaths, improve soil conditions, protect vegetation and increase food production.

The World Bank explained that the new funding would expand the activities of the existing ACReSAL project, which started in 2022 to address environmental degradation and climate-related problems in northern Nigeria.

Since its introduction, the programme has supported sustainable land management activities across approximately 550,000 hectares and reached more than 4.4 million people.

The bank also disclosed that the project had performed above its target for improving catchment management, making it possible to expand its climate adaptation activities.

The World Bank Country Director for Nigeria, Mathew Verghis, said the additional financing would enable the Federal Government to extend programmes that had already delivered positive results in communities facing environmental challenges.

He explained that the existing project had shown that investing in land restoration and climate protection could improve livelihoods while strengthening access to food and water in vulnerable communities.

Verghis added that the fresh funding would help restore more damaged land, improve agricultural activities and strengthen government institutions responsible for sustaining the project’s achievements.

The ACReSAL Task Team Leader, Iganya Agene, also said the additional financing would help move the programme beyond its earlier planning and institutional reforms into larger projects that could provide more economic benefits.

He explained that the new investment would support climate adaptation, food security, water supply, employment and improved economic activities across the benefiting communities.

The programme is being implemented by the Federal Ministry of Environment in partnership 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 flooding, environmental damage and competition over agricultural resources continue to affect rural livelihoods.

The World Bank said the project would also improve the capacity of institutions responsible for managing natural resources while encouraging economic activities that protect the environment.

The restoration of farmland is expected to support farmers by improving soil quality and making more land available for productive agricultural activities.