Nigeria is set to receive a $500 million loan from the World Bank, aimed at enhancing rural access and agricultural marketing. This loan, part of the Rural Access and Agricultural Marketing Project (RAAMP), is the 10th secured under President Tinubu, despite concerns over the country's rising debt.
The World Bank is expected to approve a $500 million loan to Nigeria on December 13, 2024, aimed at improving rural access and agricultural marketing across the country. This loan, which falls under the Rural Access and Agricultural Marketing Project (RAAMP), will focus on closing the gap between rural communities and the broader market by enhancing infrastructure and supporting agricultural development.
The project’s eligibility requirements stipulate that participating states must have fully functional Roads Funds and Agencies, with appointed boards and staff, alongside provisions for administrative costs in their state budgets. This new loan will mark the 10th World Bank loan under President Bola Tinubu’s administration. It adds to a series of loans worth $6.45 billion secured over the past 16 months, with the total amount of Nigeria’s World Bank loans having surged in recent years.
While the loan is expected to boost Nigeria's rural development efforts, it comes amid concerns about the country’s rising debt. With the national debt reaching N134.3 trillion as of June 2024, economists and past leaders, including former President Olusegun Obasanjo, have raised alarms about the long-term sustainability of Nigeria’s borrowing practices. The country’s borrowing strategy is increasingly coming under scrutiny, especially given the infrastructural deficit that persists despite these significant loans.
The approval of this loan is a significant step in Nigeria’s efforts to stimulate rural economic development but also underscores the ongoing challenges tied to the country’s fiscal health.
