World Bank Set To Approve Another $500 Million Loan For Nigeria Which Is 10th Disbursement Under Tinubu

 

The Board of the World Bank Group met on Friday 13th of December, 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 the documents on the loan, 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).