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World Bank Approves $500m Funding to Combat Flooding, Restore 1.4 Million Hectares of Degraded Land in Northern Nigeria
World Bank Approves $500m Funding to Combat Flooding, Restore 1.4 Million Hectares of Degraded Land in Northern Nigeria
The World Bank has approved an additional $500 million in financing for Nigeria to tackle persistent flooding, reverse environmental degradation, strengthen agricultural productivity and address conflicts between farmers, herders and rural communities across the northern region of the country.
The funding, approved under the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project, is expected to expand climate adaptation initiatives, improve water resource management and strengthen the livelihoods of millions of Nigerians across all 19 northern states and the Federal Capital Territory (FCT).
The ambitious intervention is targeting the restoration of approximately 1.4 million hectares of degraded land and is projected to benefit about 6.6 million people by 2031, through investments in watershed rehabilitation, erosion control, flood management and sustainable natural resource management.
In a statement published on the World Bank’s website on Wednesday, the international financial institution explained that the additional financing would build on existing efforts to protect vulnerable communities against the growing consequences of climate change and environmental deterioration.
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“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.
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“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 latest approval represents a significant expansion of the ACReSAL programme, which commenced in 2022 to address worsening environmental challenges, land degradation and climate-related vulnerabilities in northern Nigeria.
According to the World Bank, the existing programme has already introduced sustainable landscape management practices across approximately 550,000 hectares and reached more than 4.4 million beneficiaries.
The project has also reportedly surpassed its target for improved catchment management, providing a foundation for expanding investments in climate adaptation, environmental restoration and sustainable agricultural development.
Speaking on the additional financing, the World Bank Country Director for Nigeria, Mathew Verghis, said the programme had demonstrated the capacity of climate-resilient investments to improve livelihoods, strengthen food and water security and protect communities facing the greatest climate-related risks.
“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.
“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,” Verghis said.
Beyond environmental restoration, the intervention is expected to address some of the underlying factors contributing to recurring disputes between farmers, herders and other rural communities.
The World Bank noted that declining agricultural productivity, shrinking access to productive land, water insecurity and increasing competition over natural resources have continued to place pressure on rural livelihoods.
By rehabilitating degraded landscapes, improving access to water and strengthening natural resource management systems, the project is expected to reduce resource-related tensions while creating better conditions for agricultural activities and peaceful coexistence among rural communities.
The ACReSAL Task Team Leader, Iganya Agene, described the additional financing as an opportunity to move beyond the project’s existing planning and institutional achievements towards larger-scale investments with direct economic benefits for vulnerable populations.
“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 programme 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.
Its coverage of the 19 northern states and the FCT reflects the scale of environmental and agricultural challenges confronting communities in the region, where flooding, erosion, declining soil fertility and pressure on natural resources continue to threaten economic activities and household incomes.
The additional funding is also expected to strengthen institutions responsible for managing natural resources, promote sustainable economic activities and improve the resilience of agricultural communities against climate-related disasters.
With improved soil health, restored agricultural land and better water management, the intervention is expected to contribute to increased food production, improved household incomes and stronger food security.
However, the latest $500 million approval comes against the backdrop of Nigeria’s growing borrowing relationship with the World Bank under President Bola Tinubu. It also follows another major financing approval by the international financial institution approximately four months earlier.
On June 29, 2026, the World Bank approved a $1.25 billion financing package for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration programme. That package comprised a $750 million credit from the International Development Association and a $500 million loan from the International Bank for Reconstruction and Development, with the objective of supporting economic reforms, encouraging private-sector investment and stimulating job creation.
Meanwhile, figures published by the Debt Management Office indicate a substantial increase in Nigeria’s outstanding obligations to the World Bank since Tinubu assumed office.
An analysis of the figures showed that Nigeria’s debt to the institution increased from $14.34 billion in March 2023 to $20.73 billion as of June 30, 2026, representing an increase of approximately $6.39 billion, or 44.6 per cent. The outstanding amount comprises $19.12 billion owed to the International Development Association and $1.61 billion 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 $54.52 billion as of the end of June 2026, making it the country’s largest multilateral creditor.
The latest $500 million approval therefore adds another significant financing commitment to Nigeria’s expanding relationship with the World Bank, even as questions surrounding the country’s rising external debt obligations and the long-term benefits of borrowed funds remain central to national economic discussions. The development also comes amid reports that the Federal Government is pursuing another $500 million World Bank loan to establish an infrastructure financing platform, with the proposed approval date scheduled for May 25, 2027, barely four days before the inauguration of Nigeria’s next president.
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