The World Bank has approved a $500 million concessional loan for the Rural Access Agricultural Marketing Project-Scale Up (RAAMP-SU), aimed at improving Nigeria’s rural road infrastructure.
According to a statement from the World Bank, this financing, alongside an additional $100 million contribution from the Nigerian government, will help address the pressing infrastructure challenges faced by rural communities across the country.
The statement reads: “The World Bank has approved $500 million in concessional financing for the Rural Access Agricultural Marketing Project- Scale Up (RAAMP-SU) in Nigeria, the Government of Nigeria will finance an additional $100 million towards the project. This program aims to improve sustainability in the rural road sector by supporting states in establishing and operationalizing State Road Funds (SRF) and State Rural Access Roads Agency (RARA) and equipping the states and the Ministry of Agriculture to create a culture of maintenance and long-term infrastructure planning.”
Approved on December 13, 2024, the project is a response to the deteriorating state of Nigeria’s road network, with a staggering 80% of roads in rural areas currently classified as being in poor condition.
These infrastructural gaps are compounded by inadequate funding and the worsening impacts of climate change, such as extreme heat and heavy rainfall, which have caused further damage to the country’s roads.
By focusing on climate-resilient infrastructure, the project seeks to mitigate the long-term effects of these climate risks while improving connectivity in rural regions.
FG targets 6,500 kilometers of rural roads
The RAAMP-SU program aims to rehabilitate, upgrade, and maintain 6,500 kilometers of rural roads across various states, improving access to markets, healthcare, and employment opportunities for millions of Nigerians.
- By strengthening local institutions such as State Road Funds (SRF) and State Rural Access Roads Agencies (RARA), the program will foster a more sustainable approach to road maintenance and long-term infrastructure planning.
- The project will benefit approximately 4 million rural residents, including farmers, transport operators, and market participants. With a strong focus on gender equality, the program is expected to improve women’s access to healthcare and enhance their participation in the labor market.
Quoted in a statement by the World Bank, Ndiamé Diop, World Bank Country Director for Nigeria, said:
“Rural roads play a critical role in connecting agricultural land to market infrastructure, thereby helping to improve food security. Rural road interventions like the RAAMP-SU will enable socioeconomic development for isolated areas and act as a catalyst for creation of growth centers.
“The project will support improved access to the market—leading to an increased volume of traded agricultural products, farm gate prices, and household income, and reduce harvest losses. We are pleased to support this program as it has the potential to create jobs and improve the income of millions of Nigerians”
What you should know
This was the 10th approved loan project from the World Bank under the administration of President Bola Tinubu.
- So far, the Federal Government, under the leadership of President Bola Tinubu, has secured loans worth $6.95 billion from the World Bank in about 18 months.
- Nairametrics earlier reported that Nigeria received only about 16% of the total loans earlier approved by the World Bank under Tinubu.
- That is, out of $4.95 billion earlier approved loans, only $774.99 million had been disbursed as of July 31, 2024, raising concerns about the pace of project implementation and fund utilization.
According to data from the external debt report released by the Debt Management Office (DMO), the World Bank’s share of Nigeria’s debt totals $16.32 billion, with the majority owed to the International Development Association (IDA), which accounts for $16.32 billion, which represents 38% of Nigeria’s total external debt.
The International Bank for Reconstruction and Development (IBRD), another arm of the World Bank, is owed $484.0 million, or 1.13%.
