World Bank to extend fresh $500m loan to FG to boost agriculture

The World Bank is poised to extend another $500 million loan to the Federal Government of Nigeria, to support agricultural markets and rural access.

This program, called the Rural Access and Agricultural Marketing Project – Scale Up (RAAMP-SU), is intended to close the gap between rural communities and the larger market by easing access to agricultural markets, hospitals, and schools and fostering social cohesion among rural residents, according to information obtained from the bank.

This scale-up emphasizes not only the physical construction of rural access roads but also the institutional fortification through the establishment of operational Rural Access Road Agencies (RARA) and State Road Funds (SRF), the implementation of Road Asset Management Systems, and the enhancement of road safety management protocols.

The Federal Ministries of Agriculture and Rural Development (FMARD) is designated as the lead coordinating body, with support extended by various State Ministries, Departments, and Agencies (MDAs), including those focused on Works, Environment, and Women’s Affairs.

The programme has already witnessed substantial support from international financiers, including the World Bank, the African Development Bank (AfDB), and the Agence Francaise de Development (AFD).

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The approval date may be November 28, 2024. Set against the backdrop of an estimated appraisal date of July 16, 2024, the new loan project has an anticipated board approval date of November 28, 2024.

Although the project is estimated to cost $550 million, the World Bank is offering a commitment amount of $500 million. The new commitment amount is 79% higher than the initial World Bank commitment amount of $280 million for the parent project.

The fresh funding seeks to escalate the project’s impact from 19 to all 36 states of Nigeria, heralding a new era of rural development and agricultural efficiency.

With implementation planned to begin in the fiscal year of 2025, the RAAMP-SU project aims to enhance the infrastructural and institutional framework necessary for developing, maintaining, and managing Nigeria’s rural road network.

Focusing on extending connectivity and reinforcing the transport infrastructure, the project seeks to directly link rural communities with vital agro-logistics hubs alongside essential social amenities.

By: Babajide Okeowo

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