FG Secures Fresh $500m World Bank Financing as Nigeria’s Debt to Bank Hits $20.73bn
The Federal Government, under President Bola Tinubu, has secured an additional $500 million in financing from the World Bank to tackle environmental degradation, flooding and declining agricultural productivity across northern Nigeria.
The financing, approved for the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project, is expected to support the restoration of degraded land, improve water management and strengthen the resilience of rural communities facing climate-related challenges.
The intervention will cover 19 northern states and the Federal Capital Territory (FCT), with particular attention to communities affected by desertification, erosion, water shortages and recurring competition over natural resources.
Under the programme, approximately 1.4 million hectares of degraded land are expected to be restored by 2031, while an estimated 6.6 million people are projected to benefit from the intervention.
The additional financing is also expected to support watershed rehabilitation, erosion control, flood management and the restoration of damaged agricultural landscapes. These interventions are intended to improve agricultural productivity, strengthen food security and create better economic opportunities for communities that depend largely on farming and other rural activities.
World Bank Says ACReSAL Has Reached Over 4.4 Million People
The World Bank said the additional financing would enable Nigeria to expand the existing ACReSAL programme, which commenced in 2022 to address environmental degradation and strengthen the capacity of vulnerable communities to withstand climate-related disasters.
According to the bank, the project has recorded progress in several areas since its commencement.
Sustainable landscape management practices have been introduced across approximately 550,000 hectares, while more than 4.4 million people have benefited from various interventions under the programme.
The initiative has also exceeded its initial target for improved catchment management, providing a foundation for expanding its activities and extending support to additional communities.
Speaking on the latest approval, 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 expand 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.”
FG Targets Farmer-Herder Conflicts Through Environmental Restoration
The programme is expected to address several challenges that have continued to affect rural communities across northern Nigeria, including declining soil quality, water shortages, desertification, erosion and the loss of productive agricultural land.
These environmental challenges have also intensified competition for available natural resources, particularly between farmers and herders who depend on access to land and water for their livelihoods.
The restoration of degraded landscapes and improved water management are expected to reduce some of the pressures contributing to disputes in affected communities.
Improved access to grazing areas, agricultural land and water resources is also expected to encourage 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 and focus on larger-scale investments.
“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.
It covers all 19 northern states and the Federal Capital Territory, where environmental challenges continue to affect agricultural activities, rural livelihoods and access to essential resources.
Nigeria’s World Bank Debt Rises by $6.39 Billion Under Tinubu
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 was approved approximately four months after the World Bank authorised 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), both institutions of the World Bank Group.
Meanwhile, figures published by the Debt Management Office (DMO) 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 as of March 31, 2023, shortly before the commencement of the Tinubu administration.
However, the outstanding amount had risen to $20.73 billion as of June 30, 2026.
The increase represents approximately $6.39 billion, equivalent to 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.
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The rising exposure has renewed attention on the Federal Government’s borrowing from the institution, particularly as additional financing arrangements continue to emerge.
In a related development, the Federal Government is also seeking another $500 million in World Bank financing to establish an infrastructure financing platform, with the proposed approval scheduled for May 25, 2027, according to an earlier report by Politics Nigeria.
The proposed facility is expected to support the development of infrastructure investment arrangements in the country.
