The Federal Government under President Bola Tinubu has secured another $500 million in financing from the World Bank to address environmental degradation, flooding and declining agricultural productivity across northern Nigeria.
The latest financing is expected to support the restoration of degraded land, improve water management and reduce recurring conflicts between farmers, herders and rural communities.
It will cover 19 northern states and the Federal Capital Territory (FCT) under the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project.
The approval brings additional funding to an initiative designed to tackle the environmental challenges affecting communities in Nigeria’s semi-arid regions.
The project is also expected to improve agricultural production, strengthen food security and create better economic opportunities for residents who depend largely on farming and other rural activities.
Under the programme, approximately 1.4 million hectares of degraded land are expected to be restored by 2031, with an estimated 6.6 million people projected to benefit from the intervention.
The additional financing will support several environmental projects, including the rehabilitation of watersheds, erosion control, flood management and the restoration of damaged agricultural landscapes.
It will also strengthen the management of natural resources in communities increasingly affected by climate-related challenges.
The World Bank explained that the new funding would allow Nigeria to expand the existing ACReSAL programme, which began in 2022 to address environmental degradation and improve the ability of vulnerable communities to withstand climate-related disasters.
According to the bank, the project has already recorded progress in several areas.
Sustainable landscape management practices have been introduced across approximately 550,000 hectares, while more than 4.4 million people have benefited from different interventions.
The programme has also surpassed its initial target for improved catchment management, providing a foundation for expanding its activities and reaching more communities.
Speaking on the additional financing, the World Bank Country Director for Nigeria, Mathew Verghis, said the project had demonstrated the importance of investing in environmental protection and climate resilience.
“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.
He explained that the additional funding would enable the government to extend interventions that had already produced positive results in vulnerable communities.
“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 project is expected to address several challenges that have continued to affect rural communities in northern Nigeria.
These include declining soil quality, water shortages, desertification, erosion and the loss of productive agricultural land.
The challenges have also contributed to competition over available natural resources, particularly between farmers and herders who depend on land and water for their livelihoods.
With the planned restoration of degraded landscapes and improvement in water management, the programme is expected to reduce some of the pressures responsible for disputes in affected communities.
Improved access to grazing areas, agricultural land and water resources is also expected to support peaceful coexistence among different rural groups.
The ACReSAL Task Team Leader, Iganya Agene, said the latest approval would help the government move beyond the planning and institutional arrangements already established under the programme.
“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 partnership with the Federal Ministry of Water Resources and Sanitation and the Federal Ministry of Agriculture and Food Security.
Its coverage includes all 19 northern states and the FCT, where environmental challenges continue to affect agricultural activities, rural livelihoods and access to essential resources.
However, the latest approval comes amid growing attention to Nigeria’s increasing borrowing from international financial institutions under the Tinubu administration.
The fresh $500 million financing comes approximately four months after the World Bank approved another $1.25 billion financing package for Nigeria on June 29, 2026, under the Nigeria Actions for Investment and Jobs Acceleration programme.
The earlier package comprised a $750 million credit from the International Development Association (IDA) and a $500 million loan from the International Bank for Reconstruction and Development (IBRD).
That financing was designed to support economic reforms, encourage private sector investment and promote job creation across the country.
Meanwhile, figures published by the Debt Management Office indicate that Nigeria’s outstanding debt to the World Bank has increased considerably since Tinubu assumed office in May 2023.
Nigeria’s World Bank debt stood at approximately $14.34 billion in March 2023, shortly before the commencement of the Tinubu administration.
However, the figure had risen to $20.73 billion as of June 30, 2026.
The increase represents approximately $6.39 billion, or 44.6 per cent, within the period under review.
A breakdown of the outstanding amount showed that Nigeria owed $19.12 billion to the International Development Association, while its debt to the International Bank for Reconstruction and Development stood at $1.61 billion.
The World Bank consequently accounted for approximately 38.02 per cent of Nigeria’s total external debt stock of $54.52 billion as of June 2026, making it the country’s largest multilateral creditor.
POLITICS NIGERIA recalls that the Federal Government is also seeking another $500 million World Bank loan to establish an infrastructure financing platform, with the proposed approval scheduled for May 25, 2027.
The proposed financing is expected to support the development of infrastructure investment arrangements in the country.
