The World Bank is set to approve a $500 million loan for Nigeria under the Rural Access and Agricultural Marketing Project – Scale Up (RAAMP). This initiative aims to enhance rural connectivity and improve agricultural marketing, benefiting communities and fostering economic growth.
- Project Focus: The loan targets establishing efficient Roads Funds and Agencies at the subnational level, ensuring administrative budgets and fostering gender representation in the transport sector.
- Approval Date: The World Bank’s decision is expected on December 13, 2024.
This loan marks the 10th approved under President Bola Ahmed Tinubu’s administration, bringing Nigeria’s World Bank loans to $6.45 billion over 16 months. With this approval, Nigeria’s total borrowing from the World Bank over the last five years will reach $24.088 billion.
Economists, including Muda Yusuf of the Centre for the Promotion of Private Enterprise, and former President Olusegun Obasanjo, have expressed concerns about Nigeria’s escalating debt, which stood at ₦134.3 trillion as of June 2024. They argue that this growing burden poses risks to future generations and calls for strategic debt management.
While the project aims to close rural-market gaps and strengthen infrastructure, Nigeria’s rising debt profile remains a critical issue. Observers are watching how the Federal Government balances development goals with sustainable debt practices.
