The Board of the World Bank Group is expected to meet and decide on approving a $500m loan to Nigeria today (Friday) to boost rural access and agricultural marketing in the oil-rich country.
According to information obtained from the Washington-based institution on Thursday, the loan is intended for the Rural Access and Agricultural Marketing Project—Scale Up.
It is intended to bridge the gap between rural settlements and the larger economy, allowing for more efficient access to agricultural markets, schools, and hospitals while also boosting social cohesiveness among rural residents.
The World Bank is scheduled to approve the $500 million loan deal by Friday, December 13, 2024.
Chronicle NG reported that the Federal Government was negotiating with the World Bank for the loan.
According to a loan document reviewed by our correspondent, states interested in participating in the project must have a fully functional Roads Fund and Roads Agency with appointed boards and staff, as well as administrative expense allowances in their state budget.
The document noted, “While the eligibility for state participation under RAAMP required the draughting 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) the state’s demonstrated commitment in the projected infrastructure efficient maintenance, including potential co-financing from their own resources.”
The paper further said that the implementation of resettlement and compensation plans is a requirement for project operations that result in resettlement.
If authorised, this will be the World Bank’s tenth credit project under President Bola Tinubu’s administration.
The Federal Government, led by President Bola Tinubu, has secured loans from the World Bank totalling $6.45 billion in the last 16 months.
The amount grew to the current figure following the World Bank’s recent approval of three fresh loans totalling $1.57 billion for various projects in Nigeria, and it is projected to rise further in the coming months.
Chronicle NG further gathered that the international lender approved no fewer than 36 loan requests to the Federal Government, amounting to a substantial total of $24.088bn within five years.
These licenses, which are targeted at financing numerous development projects across the country, come at a time when the country’s debt profile is expanding, raising concerns about the sustainability of these financial obligations and their possible long-term economic implications.
