World Bank Approves $500m Loan to Tackle Environmental Challenges in Nigeria

The World Bank has approved a $500 million loan to Nigeria to tackle growing environmental challenges, including flooding, land degradation and conflicts between farmers and herders over access to natural resources.

The funding will cover 19 northern states and the Federal Capital Territory (FCT), with the aim of rehabilitating 1.4 million hectares of degraded land and improving the livelihoods of approximately 6.6 million people by 2031.

The World Bank announced the approval in a statement published on its website on Wednesday, explaining that the intervention would focus on restoring watersheds, controlling soil erosion, improving water management and strengthening agricultural activities in vulnerable communities.

According to the bank, the programme is also expected to reduce competition for farmland and water resources, which has contributed to recurring clashes between farmers, herders and other rural communities.

The latest funding represents an extension of the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project, launched in 2022 to address environmental degradation and climate-related challenges in northern Nigeria.

The existing programme has reportedly introduced improved land management practices across 550,000 hectares and reached more than 4.4 million people.

The World Bank Country Director for Nigeria, Mathew Verghis, said the additional financing would enable the Federal Government to expand interventions that have already delivered positive results in communities vulnerable to climate change.

He noted that restoring degraded ecosystems and investing in climate adaptation could increase rural incomes, safeguard food and water supplies and strengthen communities’ ability to withstand environmental shocks.

Similarly, the project’s Task Team Leader, Iganya Agene, said the additional funding would support larger investments by building on the institutional structures and groundwork established under the initial programme.

She explained that the intervention would prioritise improved agricultural productivity, employment generation and expanded economic opportunities for rural residents.

The project is being implemented through a partnership involving the Federal Ministries of Environment, Water Resources and Sanitation, and Agriculture and Food Security.

It is designed to improve natural resource management, restore degraded landscapes and strengthen the resilience of rural economies across the beneficiary states.

However, the fresh borrowing comes amid growing concerns over Nigeria’s rising debt obligations to the World Bank.

Figures from the Debt Management Office showed that Nigeria’s exposure to the institution increased from $14.34 billion in March 2023 to $20.73 billion at the end of June 2026, representing an increase of $6.39 billion.

The figures further indicated that the World Bank accounted for 38.02 per cent of Nigeria’s total external debt of $54.52 billion as of June 2026.

Of the amount owed to the institution, $19.12 billion was attributed to the International Development Association, while another $1.61 billion was owed to the International Bank for Reconstruction and Development.

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