The federal government has approached the World Bank for a $500 million loan to improve rural roads, enhance access to agricultural products, and address rising food prices across the nation.
This funding request is part of the Nigeria Rural Access and Agricultural Marketing Project Scale-Up (RAAMP-SU), overseen by the Federal Ministry of Agriculture and Rural Development.
According to the World Bank, the project aims to benefit approximately 92 million people in rural areas currently lacking adequate road networks.
The RAAMP-SU will focus on three main components: Improvement of Resilient Rural Access ($387 million), Climate-Resilient Asset Management ($158 million), and Institutional Strengthening and Project Management ($55 million).
The total cost of the project is estimated at $600 million, with the World Bank expected to provide 83.33% of the required funding. This commitment represents a significant increase of 79% compared to the initial World Bank commitment of $280 million for the parent project.
To participate in the programme, states will be required to have fully functional Roads Funds and Roads Agencies with appointed boards and staff, as well as provisions for administrative costs in their budgets.
The project also aims to promote women’s representation in the transport sector through Rural Access and Agricultural Roads Agencies (RARAs).
This initiative comes at a critical time as Nigeria grapples with rising food inflation, which reached 40.53% in April 2024, according to the National Bureau of Statistics. Experts attribute the food price hikes to factors such as insecurity, high energy costs, and expensive transportation.
The loan request also comes against the backdrop of Nigeria’s growing debt profile. As of the end of 2023, the country’s total debt stock stood at N97.341 trillion, with foreign debt accounting for N38.22 trillion or 39% of the total, according to the Debt Management Office.
The RAAMP-SU project underscores the government’s efforts to address infrastructure challenges in rural areas, improve agricultural productivity, and ultimately combat rising food prices across the nation.
