The World Bank Board is set to approve a $500 million loan to Nigeria today, 13 December, 2024 aimed at enhancing rural access and agricultural marketing across the country.
The loan will fund the Rural Access and Agricultural Marketing Project—Scale Up (RAAMP-SU), designed to improve rural infrastructure and promote social cohesion.
The loan aims to strengthen rural communities by improving access to agricultural markets, schools, and hospitals, fostering better integration into the broader marketplace, according to a document on the loan sight by Africa Health Report.
“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.”
If approved, this loan will mark the 10th such agreement between the World Bank and Nigeria under President Tinubu’s administration, which has secured over $6.45 billion in loans since taking office.
However, the rising number of loans has prompted concerns over Nigeria’s growing debt burden. With the World Bank approving 36 loans worth $24.088 billion in the past five years, questions about the long-term financial sustainability persist amidst increasing debt obligations.
