International lender, the World Bank, is set to consider and approve a $500 million loan for Nigeria on Friday.
The loan aims to enhance rural accessibility and agricultural marketing across the country.
This was disclosed by the Washington-based financial institution on Thursday.
The decision pertains to Nigeria’s request under the Rural Access and Agricultural Marketing Project – Scale Up initiative.
This program seeks to bridge the gap between rural communities and broader markets, promoting economic integration and development.
To qualify for participation in the project, subnational entities are required to establish a fully operational Roads Fund and Roads Agency.
Also, the agencies must have appointed boards and staff, with provisions for administrative costs included in their state budgets.
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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 approval of the latest loan by the World Bank would mark the 10th project funded by the institution under Bola Ahmed Tinubu.
Under Tinubu’s leadership, the Federal Government has already secured loans totaling $6.45 billion from the World Bank within the last 16 months.
With the recent approval of three additional loans worth $1.57 billion for various projects, the total loan amount is set to rise further.
Data from the past five years reveals that Nigeria has obtained at least 35 loan approvals from the World Bank, amounting to $24.088 billion.
These loans have been directed towards various sectors, including power ($750 million), women empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), and resource mobilization reforms ($750 million).
Meanwhile, Nigeria’s total debt had climbed to N134.3 trillion as of June and is expected to increase further with additional borrowings planned for 2024.
Former President Olusegun Obasanjo has previously expressed concerns over Nigeria’s escalating debt, warning of significant challenges for future generations.
Similarly, economic experts, such as Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, have raised alarms about the nation’s rising debt amid persistent infrastructure deficits.
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