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The World Bank Group’s Board is expected to convene today (Friday) to deliberate on a $500 million loan application submitted by the Nigerian government under President Bola Tinubu’s administration.
The proposed loan is aimed at advancing the Rural Access and Agricultural Marketing Project—Scale Up (RAAMP-SU) initiative. Its primary objective is to improve connectivity between rural areas and larger markets, ensuring easier access to agricultural hubs, schools, and healthcare facilities, while fostering social integration within rural communities.
A report obtained by PUNCH outlines the criteria for state participation in the project. To qualify, states must establish fully operational Roads Funds and Roads Agencies, complete with appointed boards and staff, as well as allocate budgetary provisions for administrative costs.
The document notes, “Unlike the initial RAAMP requirements, which only mandated the drafting and submission of Road Fund and Roads Agency bills to state assemblies, this new project necessitates fully functioning Roads Funds and Agencies, with the requisite administrative frameworks in place.”
Additionally, the project emphasizes gender inclusion by offering opportunities to enhance women’s involvement in the transportation sector.
The allocation of RAAMP-SU funds will be determined through a competitive process, considering factors such as a refined socioeconomic selection framework to increase rural access to essential services, project readiness, and state commitments to infrastructure maintenance, including co-financing capabilities.
Another key requirement is the implementation of resettlement and compensation plans for activities that may displace communities, which must be completed before project initiation.
If approved, this will be the 10th loan secured by the Tinubu administration from the World Bank. Since assuming office, President Tinubu’s government has obtained $6.45 billion in loans from the World Bank over 16 months. This figure includes three recently approved loans totaling $1.57 billion for various national projects and is expected to rise further.
Previous loans secured during Tinubu’s tenure include $750 million for projects, $500 million for women’s empowerment, $700 million for girl’s education, $750 million for renewable energy, $1.5 billion for economic stabilization reforms, and $750 million for resource mobilization reforms.
