By Niyi Jacobs
World Bank Set to Approve $500m Loan for Nigeria’s Rural Access Project
The World Bank is expected to approve a $500 million loan for Nigeria on Friday to enhance rural access and agricultural marketing under the Rural Access and Agricultural Marketing Project – Scale Up (RAAMP).
According to information from the Washington-based institution, the loan aims to bridge the gap between rural communities and broader markets. The initiative mandates participating states to establish fully functional Roads Funds and Roads Agencies with appointed boards, staff, and administrative budget provisions.
A World Bank document highlighted, “The new project requires states to have operational Roads Funds and Roads Agencies with adequate resources. Additionally, RAAMP offers opportunities to promote women’s representation in the transport sector.”
If approved, this will be the 10th loan granted to Nigeria under President Bola Ahmed Tinubu, bringing total World Bank loans secured by his administration in 16 months to $6.45 billion.
Over the past five years, Nigeria has secured at least 35 loans from the World Bank, amounting to $24.088 billion. Recent loans include $750 million for power, $500 million for women empowerment, $700 million for girls’ education, and $750 million for renewable energy.
Critics, including former President Olusegun Obasanjo, have expressed concerns over Nigeria’s soaring debt, which rose to N134.3 trillion by mid-2024. Economists like Muda Yusuf also warn of the dangers of escalating borrowing amid the country’s infrastructural deficits.
As the loan approval looms, questions persist about the sustainability of Nigeria’s debt profile and its long-term economic implications.
