World Bank set to approve Nigeria’s $500 million loan, 10th under Tinubu’s administration
On Friday, December 13, 2024, the World Bank is expected to approve a $500 million loan for Nigeria to enhance rural access and agricultural marketing in the country.
The loan is part of the Rural Access and Agricultural Marketing Project – Scale Up, a program designed to improve connections between rural communities and larger markets across Nigeria. Information obtained from the World Bank in Washington revealed that the decision would be made on Friday.
To qualify for participation in the project, state governments must have a fully functional Roads Fund and Roads Agency, complete with appointed boards, staff, and administrative budget provisions. This requirement aims to strengthen the transport sector and encourage more women’s involvement.
If approved, this will be the 10th loan the World Bank has granted under President Bola Ahmed Tinubu’s administration. In just 16 months, the Nigerian government has secured $6.45 billion in loans from the World Bank.
This approval would bring the total value of loans to Nigeria from the World Bank to $1.57 billion after the recent approval of three other loan projects. Over the past five years, Nigeria has received 35 loan approvals from the World Bank, totaling $24.088 billion. These loans have funded projects in various sectors, including power, women’s empowerment, girl’s education, renewable energy, and economic reforms.
However, Nigeria’s growing debt has raised concerns, with the country’s debt reaching N134.3 trillion by June 2024. Some critics, including former President Olusegun Obasanjo and economist Muda Yusuf, have warned about the potential long-term impacts of the country’s rising debt, especially amidst ongoing infrastructure challenges.
