The World Bank is expected to approve a $500 million loan to Nigeria on Friday, December 13, 2024, aimed at enhancing rural access and agricultural marketing in the country.
This information was sourced from the Washington-based institution on Thursday.
The loan, which falls under the Rural Access and Agricultural Marketing Project – Scale Up, seeks to bridge the gap between rural communities and larger marketplaces.
To participate in the project, states must meet specific conditions, including the establishment of a fully functional Roads Fund and Roads Agency with appointed boards, staff, and provisions for administrative costs within their state budgets.
The document outlined that “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.”
If approved, this will mark the 10th loan project from the World Bank under the leadership of President Bola Ahmed Tinubu.
Over the last 16 months, Nigeria has secured loans totaling $6.45 billion from the institution.
This approval follows the recent green light for three additional loans amounting to $1.57 billion for various projects in the country.
In total, Nigeria has received 35 loan approvals from the World Bank in the past five years, amounting to $24.088 billion.
These loans have been directed towards initiatives such as power ($750 million), women empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), and resource mobilization reforms ($750 million).
As of June 2024, Nigeria’s debt has reached N134.3 trillion, a figure that is set to rise further with the loans anticipated in 2024.
Former Nigerian President Olusegun Obasanjo has criticized the country’s growing debt, warning that it could have severe consequences for both current and future generations.
Economists, including Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, have also expressed concerns over the increasing debt burden amid Nigeria’s infrastructure deficits.
