FG Seeks Fresh $500m World Bank Loan for Dam Safety

FG seeks a fresh $500m World Bank loan for dam safety. Learn about the proposed improvements and their significance.

A new petition for a loan of $500 million has been submitted by the Nigerian federal government to the World Bank, aiming to boost dam protection and elevate water resource administration nationwide.

The focus of this program is to tackle significant challenges across four key domains: enhancing institutional capacity and strengthening, modernizing irrigation techniques, upgrading dam operations for improved safety measures, and optimizing project management.

According to the Project Information Document from the World Bank, approval for the SPIN project is scheduled for September 26th, 2024.

The challenges of water security in Nigeria have been greatly worsened by climate change, leading to a significant decrease in the availability of drinking water as well as negatively impacting energy and food production.

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This has resulted in potential risks for livelihoods and economic development within the country.

According to the report, there are more than 400 dams in Nigeria that require urgent rehabilitation. These dams collectively store around 59 billion cubic meters of water, with approximately half owned and supervised by the Federal Ministry of Water Resources and Sanitation through River Basin Development Authorities.

State ministries own and manage the remaining 48% of dams. However, a considerable number are unfinished, while more than half of the large-scale structures established during the 1970s and ’80s necessitate significant restoration efforts.

The insufficiency of funds, personnel, and capabilities at both the federal and state levels is causing obstacles in dam management.

Moreover, the dilemma is intensified due to disregard for operational guidelines, whenever applicable. The catastrophic floods that transpired in 2022 resulted in approximately $6.7 billion worth of economic losses and accentuated the pressing requirement for better dam security and water administration.

The suggested loan aims to boost agriculture productivity and water resource efficiency in Nigeria by rehabilitating and modernizing 40,000 hectares of irrigated land.