ABUJA, Nigeria (VOICE OF NAIJA)-The World Bank Group’s Board is set to convene today (Friday) to consider approving a $500 million loan for Nigeria aimed at enhancing rural access and agricultural marketing.
The loan, intended for the Rural Access and Agricultural Marketing Project—Scale Up, seeks to improve connectivity between rural areas and larger markets.
It will focus on easing access to agricultural markets, schools, and healthcare facilities while fostering greater social integration in rural communities.
The decision was confirmed by sources within the Washington-based institution on Thursday.
The World Bank is anticipated to approve a $500 million loan project by Friday, December 13, 2024.
The Federal Government has been negotiating with the World Bank regarding the loan.
A document related to the loan indicates that states wishing to participate must have a fully operational Roads Fund and Roads Agency, complete with appointed boards and staff, as well as provisions for administrative costs in the state budget.
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The document noted, “While the eligibility for state participation under RAAMP required the drafting and placement of Road Fund and Roads Agency bills in the State house of assemblies, the new project would require the states to have a fully functional Roads Fund and Roads Agency with appointed boards and staff, and provision for administrative costs made in the state budget. In addition, RARAs offer an opportunity to foster women’s representation in the transport sector.
“The RAAMP-SU’s funds will be allocated on a competitive basis between states factoring in: (a) a refined socioeconomic selection matrix to increase rural access to basic services and promote food security; (b) activities readiness in terms of design; and (c) state’s demonstrated commitment in the projected infrastructure efficient maintenance, including potential co-financing from their own resources.”
The document also highlighted that the implementation of resettlement and compensation plans is a requirement for any project activities that involve resettlement.
If approved, this will mark the 10th loan project from the World Bank during President Bola Tinubu’s administration.
Over the past 16 months, the Federal Government, under President Tinubu, has secured loans totaling $6.45 billion from the World Bank.
This figure rose following the recent approval of three new loans amounting to $1.57 billion for various projects in Nigeria, with expectations for further increases in the coming months.
Additionally, the World Bank has approved 36 loan requests from the Federal Government over the past five years, totaling $24.088 billion.
These loans are intended to finance a variety of development projects across the country, but they have also sparked growing concerns about Nigeria’s rising debt and the long-term sustainability of these financial obligations.
Some key projects financed under President Tinubu’s administration include loans for power ($750 million), women’s empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), and resource mobilization reforms ($750 million).