The World Bank Group’s Board may convene today (Friday) to approve a $500 million loan for the Nigerian government led by President Bola Ahmed Tinubu.
According to documents obtained by The PUNCH, the loan aims to enhance rural access and agricultural marketing through the Rural Access and Agricultural Marketing Project—Scale Up (RAAMP-SU). This initiative seeks to bridge the gap between rural communities and larger marketplaces, improving access to agricultural markets, schools, hospitals, and fostering social cohesion in rural areas.
States interested in participating in the project must meet specific criteria, including the establishment of a fully operational Roads Fund and Roads Agency with functional boards and staff, along with provisions for administrative costs in their state budgets.
The document specifies:
“While eligibility for state participation under RAAMP previously required drafting and submitting Road Fund and Roads Agency bills to State Houses of Assembly, the new project mandates states to have fully functional Roads Funds and Roads Agencies, complete with appointed boards and staff, and adequate budgetary provisions for administrative costs.”
Additionally, RAAMP-SU aims to promote women’s representation in the transport sector and allocates funds competitively based on:
- A socioeconomic selection matrix to improve rural access to basic services and food security.
- Readiness of project designs.
- States’ commitment to infrastructure maintenance, including potential co-financing from state resources.
The project also requires states to implement resettlement and compensation plans before initiating activities that may lead to displacement.
If approved, this will mark the Tinubu administration’s 10th loan project from the World Bank. In 16 months, the government has secured $6.45 billion in loans from the institution.
This figure includes three recent approvals totaling $1.57 billion for various projects. Previous loans have supported women’s empowerment ($500 million), girl’s education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), resource mobilization reforms ($750 million), and other initiatives.
The proposed $500 million loan for RAAMP-SU reflects the administration’s focus on rural development and agricultural advancement, albeit amid increasing concerns about Nigeria’s debt profile.
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Opeoluwa Benson – Content Researcher
