The World Bank has authorised an additional $500m in funding to help Nigeria address flooding, rehabilitate damaged agricultural lands and curb conflicts involving farmers, herders and rural communities in the northern region.
The financing, approved under the Agro-Climatic Resilience in Semi-Arid Landscapes Project (ACReSAL), will support climate adaptation measures, better water resource management and increased agricultural production across 19 northern states and the Federal Capital Territory.
According to a statement published on the World Bank’s website and obtained by journalists on Wednesday, the intervention is expected to restore 1.4 million hectares of degraded land and improve the livelihoods of about 6.6 million people by 2031.
The programme will also cover watershed rehabilitation, erosion prevention and sustainable management of natural resources in communities exposed to climate-related risks.
The bank said the additional funding would build on the progress recorded under the existing ACReSAL programme, launched in 2022 to tackle environmental degradation and climate vulnerabilities in northern Nigeria.
It disclosed that the project had so far promoted sustainable land management across approximately 550,000 hectares, reaching more than 4.4 million beneficiaries.
The programme has also surpassed its target for improved catchment management, creating a foundation for expanding investments in climate adaptation.
The World Bank Country Director for Nigeria, Mathew Verghis, said the fresh funding would allow the government to extend interventions that had produced positive outcomes 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 noted that the project targets several interconnected problems confronting rural populations, including deteriorating land quality, declining farm output, inadequate water supply and competition over natural resources.
It said improving access to usable farmland and water would help ease the pressures behind disputes involving farmers, herders and other rural groups.
The ACReSAL Task Team Leader, Iganya Agene, said the additional resources would help move the project beyond its existing planning and institutional reforms towards larger investments that create economic opportunities.
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“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 initiative is being executed by the Federal Ministry of Environment alongside the Federal Ministry of Water Resources and Sanitation and the Federal Ministry of Agriculture and Food Security.
Its coverage extends across all 19 northern states and the FCT, where flooding, environmental damage and growing pressure on agricultural resources continue to affect rural livelihoods.
The World Bank said the new financing would also strengthen institutions responsible for natural resource management and promote sustainable economic activities in rural areas.
Through the rehabilitation of agricultural landscapes, improved soil conditions and support for more productive farming, the project is expected to contribute to better food security.
The latest approval follows a $1.25bn financing package approved by the World Bank for Nigeria on June 29, 2026, under the Nigeria Actions for Investment and Jobs Acceleration programme.
That package consisted of 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, encourage private sector investment and generate employment.
The latest $500m approval also comes against the backdrop of rising Nigerian borrowing from the World Bank under President Bola Tinubu.
Figures from the Debt Management Office show that Nigeria’s outstanding obligations to the institution increased from $14.34bn in March 2023, shortly before Tinubu took office, to $20.73bn as of June 30, 2026.
The increase of $6.39bn represents a 44.6 per cent rise during the period.
Of the outstanding amount, $19.12bn was owed to the International Development Association, while $1.61bn was due to the International Bank for Reconstruction and Development.
The figures further indicate that the World Bank held about 38.02 per cent of Nigeria’s total external debt of $54.52bn at the end of June 2026, making it the country’s largest multilateral creditor.
Meanwhile, it was earlier reported that the Federal Government was pursuing another $500m World Bank loan to establish an infrastructure financing platform.
The proposed facility is scheduled for consideration on May 25, 2027, four days before the inauguration of Nigeria’s next president.