World Bank Considers $500 Million Loan for Nigeria to Boost Rural Access and Agricultural Marketing

The World Bank is set to review and potentially approve a $500 million loan request from Nigeria on Friday, December 13, 2024. The loan, under the Rural Access and Agricultural Marketing Project-Scale Up (RAAMP-SU), aims to enhance agricultural marketing and rural infrastructure across the country.

The project’s goal is to bridge the gap between rural communities and larger markets by improving road networks and fostering economic integration. To qualify for the initiative, participating states must establish functional Roads Funds and Roads Agencies, complete with boards, staff, and allocated administrative budgets.

According to the World Bank document, the project also promotes inclusivity, offering opportunities for increased women’s representation in the transport sector.

This would mark the World Bank's tenth loan approval under President Bola Ahmed Tinubu’s administration. Over the past 16 months, Nigeria has secured $6.45 billion in loans from the institution for various developmental projects, including:

• $750 million for power sector improvements.
• $500 million for women’s empowerment programs.
• $700 million for girls' education initiatives.

Economists have expressed mixed reactions to Nigeria’s borrowing trends. While these loans are expected to address critical infrastructure and social challenges, concerns over the nation’s growing debt burden persist.

Former President Olusegun Obasanjo recently described Nigeria’s debt profile as a significant issue for current and future generations. Similarly, Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, emphasized the need for fiscal prudence, highlighting the potential risks of mounting debt alongside the country's infrastructure deficit.

At the close of the second quarter of 2024, Nigeria’s total debt reached N134.3 trillion. Experts warn that the nation’s borrowing trajectory must be carefully managed to balance development needs with long-term economic stability.