Nigeria seeks $500m World Bank loan for dam safety, others

The Federal Government has requested a $500m loan from the World Bank to improve dam safety and enhance water resource management across the federation.

The request was disclosed in World Bank’s Project Information Document on Monday. According to the document, the loan is expected to address the country’s water security challenges and boost agricultural productivity through the Sustainable Power and Irrigation for Nigeria Project.

The SPIN project focuses on four critical areas, which include institutional strengthening and capacity building; irrigation modernisation; improvements in dam operations and safety; and project management.

The proposed approval date for the SPIN project is September 26, 2024.

This area will reinforce federal and state institutions responsible for water resource management. It includes developing national dam safety guidelines, training for water resources and irrigation management, and creating a comprehensive hydropower master plan.

The document read, “Nigeria faces water security challenges, which impact water availability for drinking water, energy and food production, and are increasingly exacerbated by climate change, putting livelihoods and economic development at risk. Harnessing water storage and dam safety is central to climate change adaptation and mitigation in Nigeria. It is a prerequisite to improving water management for water supply, irrigation, and hydropower generation and offers protection from floods and droughts.

“Nigeria has over 400 dams and an estimated total combined storage of 59 billion cubic meters. 46 per cent of dams are federally owned and are managed by the Federal Ministry of Water Resources and Sanitation, through River Basin Development Authorities. 48 per cent of dams are state-owned and are managed by a state ministry. Many dams are incomplete and more than 50 per cent of the large dams built in the 1970s and 80s require rehabilitation.

“This situation is due in part to institutions responsible for dam management, whether at the federal or state level, having inadequate budget, human resources and capacity to ensure dam management, operation and maintenance and non-adherence to operational manuals, where they exist.”

The document noted that the country has over 400 dams, many of which are in dire need of rehabilitation.

It was also stated that the devastating 2022 floods, which caused an estimated $6.7bn in economic damage, underscored the urgent need for improved dam safety and water management.

For the second area of the project, the Federal Government plans to rehabilitate and modernise 40,000 hectares of irrigated land. It will also establish and empower Water User Associations to manage irrigation schemes efficiently.

The third area will focus on rehabilitating and enhancing the safety of priority dams, including conducting risk assessments, preparing emergency action plans, and implementing structural safety improvements.

The final area is to ensure effective project implementation, monitoring, and evaluation, this component includes establishing a Federal Project Management Unit and Technical Units at both federal and state levels.