World Bank Approves Fresh Loan for Nigeria, Debt Rises to $20.73bn
- The World Bank has approved a fresh $500 million loan for Nigeria to tackle flooding, restore degraded farmland and reduce farmer-herder conflicts across 19 northern states and the FCT
- The additional financing is expected to restore 1.4 million hectares of land and benefit 6.6 million people by 2031
- Nigeria’s outstanding debt to the World Bank has increased by $6.39 billion, or 44.6%, since March 2023, reaching $20.73 billion
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The World Bank has approved a fresh $500 million financing for Nigeria to address flooding, restore degraded agricultural land and reduce competition over natural resources in northern communities.
The funding, approved under the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project, will support climate adaptation, water management and agricultural productivity across 19 northern states and the Federal Capital Territory.
Source: Getty Images
According to a statement published on the World Bank's website, the additional financing is expected to restore 1.4 million hectares of degraded land and benefit approximately 6.6 million people by 2031.
The intervention will also support watershed rehabilitation, erosion control and improved management of natural resources in communities exposed to climate-related disasters.
The World Bank said the programme was designed to reduce flooding and associated fatalities, improve soil health, increase household incomes and strengthen agricultural productivity.
It also expects the intervention to reduce conflicts involving farmers, herders and other rural communities by improving access to productive land and water resources.
World Bank highlights earlier ACReSAL achievements
The latest financing builds on the existing ACReSAL programme, which began in 2022 to address environmental degradation and climate vulnerabilities across northern Nigeria.
The bank said the project had introduced sustainable landscape management practices across approximately 550,000 hectares and reached more than 4.4 million beneficiaries.
World Bank Country Director for Nigeria, Mathew Verghis, said the additional funding would help expand interventions that had improved livelihoods, food security and water access in vulnerable communities.
The ACReSAL Task Team Leader, Iganya Agene, added that the financing would translate earlier planning and institutional reforms into larger investments supporting jobs and economic opportunities.
The project 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.
Nigeria's World Bank debt rises to $20.73bn
The latest approval comes amid growing indebtedness to the World Bank under President Bola Tinubu.
An analysis of Debt Management Office figures shows that Nigeria's outstanding debt to the World Bank increased from $14.34 billion in March 2023 to $20.73 billion as of June 30, 2026.
Source: Getty Images
This represents an increase of approximately $6.39 billion, or 44.6%, within the period.
The breakdown of Nigeria's World Bank debt as of June 2026 is:
World Bank lending institution | Amount owed |
International Development Association (IDA) | $19.12 billion |
International Bank for Reconstruction and Development (IBRD) | $1.61 billion |
Total | $20.73 billion |
The World Bank accounted for approximately 38.02% of Nigeria's total external debt of $54.52 billion at the end of June 2026, making it the country's largest multilateral creditor.
The latest approval also follows a $1.25 billion financing package approved by the World Bank on June 29, 2026, 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.
Source: Legit.ng
