World Bank Poised To Approve $500 Million Loan To Nigeria Today

World Bank Poised To Approve $500 Million Loan To Nigeria Today

The Board of the World Bank Group is anticipated to convene today (Friday) to vote on a $500 million loan to Nigeria aimed at enhancing rural access and agricultural marketing, as reported by The PUNCH…READ MORE…

Information sourced from the Washington-based institution on Thursday reveals that the loan pertains to the Rural Access and Agricultural Marketing Project—Scale Up. This initiative is intended to connect rural communities with larger markets, improving access to agricultural markets, schools, and hospitals while fostering social cohesion among rural residents.

The World Bank is expected to finalize the approval of the $500 million loan project by Friday, December 13, 2024.

The PUNCH previously reported that the Federal Government has been in discussions with the World Bank regarding this loan.

A document related to the loan, reviewed by our correspondent, outlines that states interested in participating in the project must have a fully operational Roads Fund and Roads Agency, complete with appointed boards and staff, as well as budgetary provisions for administrative expenses.

The document specifies, “Eligibility for state participation under RAAMP requires the establishment and placement of Road Fund and Roads Agency bills in the State House of Assemblies; the new project will necessitate that states maintain a fully functional Roads Fund and Roads Agency, along with appointed boards and personnel, and adequate administrative budget provisions. Moreover, RARAs provide an opportunity to enhance women’s representation in the transportation sector.

“Funding for the RAAMP-SU will be allocated competitively among states, taking into account: (a) a refined socioeconomic selection matrix to improve rural access to essential services and boost food security; (b) readiness of proposed activities in terms of design; and (c) the state’s commitment to the efficient maintenance of projected infrastructure, which may include potential co-financing from their own resources.”

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Additionally, the document highlights that implementing resettlement and compensation plans is mandatory for any project activities that necessitate resettlement.

If approved, this will mark the 10th loan project granted by the World Bank during President Bola Tinubu’s administration.

Under President Tinubu’s leadership, the Federal Government has secured loans totaling $6.45 billion from the World Bank over the past 16 months. This figure has risen following recent approvals of three new loans amounting to $1.57 billion for various Nigerian projects, and further increases are anticipated in the coming months.

The PUNCH has learned that the international lender has approved at least 36 loan requests from the Federal Government, totaling an impressive $24.088 billion over the past five years. These approvals are aimed at funding a variety of development initiatives across the country, amid growing concerns regarding Nigeria’s rising debt profile and the sustainability of these financial commitments as well as their potential long-term economic impacts.

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