Friday, December 13, 2024 - The Board of the World Bank Group may meet today (Friday) to approve a new loan request from the President Bola Tinubu-led Nigerian government.
This time, the country is seeking a $500million loan to boost rural
access and agricultural marketing in the country.
The loan sought by the government is targeted for the Rural Access and
Agricultural Marketing Project—Scale Up.
Further details of the proposed loan shows an intent to bridge the gap
between rural communities and the broader marketplace, facilitating smoother
access to agricultural markets, schools, and hospitals and promoting social
cohesion among rural populations.
According to a document on the loan seen by PUNCH, states willing to
participate in the project are required to have a fully functional Roads Fund
and Roads Agency with appointed boards and staff, and provisions for
administrative costs in the state budget.
The document noted, “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.”
The document also noted that the implementation of resettlement and
compensation plans is a prerequisite for project activities that cause
resettlement.
If approved, this will be the 10th loan project from the World Bank
under the administration of President Bola Tinubu.
The Federal Government, under the leadership of President Bola Tinubu,
has secured loans worth $6.45billion from the World Bank in 16 months so far.
The amount increased to the new figure following the recent approval of
three new loans totalling $1.57billion from the World Bank for various projects
in Nigeria and is expected to increase further in the coming months.
The administration had obtained loans for projects such as ($750million), women empowerment ($500million), girl’s education ($700million), renewable energy ($750million), economic stabilisation reforms ($1.5billion) and resource mobilisation reforms ($750million).
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