Nigeria Seeks $500m World Bank Loan for Dam Safety and Water Management
The Nigerian Federal Government has approached the World Bank for a $500 million loan to enhance dam safety and water resource management across the country. This significant investment is poised to address the nation’s water security issues and stimulate agricultural productivity through the Sustainable Power and Irrigation for Nigeria Project (SPIN).
Outlined in a World Bank Project Information Document released on Monday, the SPIN project is structured around four pivotal components: institutional strengthening and capacity building, irrigation modernisation, improvements in dam operations and safety, and project management. The World Bank’s proposed approval date for the SPIN project is set for September 26, 2024.
Central to the initiative is the reinforcement of federal and state institutions responsible for water resource management. This includes the development of national dam safety guidelines, comprehensive training for water resources and irrigation management, and the creation of a detailed hydropower master plan.
The document highlights, “Nigeria faces significant water security challenges impacting the availability of water for drinking, energy, and food production. These challenges are exacerbated by climate change, jeopardising livelihoods and economic development. Effective water storage and dam safety are critical for climate change adaptation and mitigation in Nigeria. These measures are essential for improving water management, irrigation, and hydropower generation, and they provide crucial protection against floods and droughts.”
Nigeria’s extensive network of over 400 dams, with a combined storage capacity of 59 billion cubic meters, underscores the importance of this initiative. Approximately 46 per cent of these dams are federally managed by the Federal Ministry of Water Resources and Sanitation through the River Basin Development Authorities, while 48 per cent are state-managed. A significant number of these dams remain incomplete, and over half of the large dams constructed in the 1970s and 80s are in dire need of rehabilitation.
The document attributes these issues to insufficient budgets, inadequate human resources, and limited capacity for effective dam management at both federal and state levels. The adherence to operational manuals, where they exist, is also a critical area of concern.
The urgency of improved dam safety and water management was starkly highlighted by the devastating floods of 2022, which inflicted an estimated $6.7 billion in economic damage. This catastrophe has reinforced the need for robust measures to ensure water security and infrastructure resilience.
In the second phase of the SPIN project, the Federal Government plans to rehabilitate and modernise 40,000 hectares of irrigated land. This phase includes the establishment and empowerment of Water User Associations to manage irrigation schemes efficiently, ensuring that local stakeholders are actively involved in sustainable water resource management.
The third focus area involves the rehabilitation and enhancement of priority dams. This includes conducting comprehensive risk assessments, preparing emergency action plans, and implementing structural safety improvements to bolster the resilience of these critical infrastructures.
The final component of the SPIN project is dedicated to ensuring effective project implementation, monitoring, and evaluation. This will be achieved through the establishment of a Federal Project Management Unit and Technical Units at both federal and state levels, ensuring a coordinated and streamlined approach to project execution.
The Federal Government’s strategic approach to this initiative underscores the importance of collaborative efforts and long-term planning in addressing Nigeria’s water security challenges. By securing the $500 million loan from the World Bank, the government aims to lay a solid foundation for sustainable water management, improved agricultural productivity, and enhanced economic stability for the nation.
