The Nigerian Federal Government has disclosed its intention to secure a $500 million loan from the World Bank to address the pressing need for rural road infrastructure and agricultural marketing. The loan is part of the Nigeria Rural Access and Agricultural Marketing Project Scale-UP, overseen by the Federal Ministry of Agriculture and Rural Development.
The primary objective of the loan is to improve connectivity in rural areas of Nigeria, where approximately 92 million people lack access to well-maintained roads. The final draft of the project’s Resettlement Policy Framework emphasizes that, despite Nigeria’s extensive road network, only 25.5% of the rural population resides within a 2-kilometer radius of an all-weather road.
The RAAMP-SU project aims to enhance rural access and climate resilience, thereby boosting the agricultural potential and marketing prospects for agrarian communities. It is expected that these improvements will contribute to better livelihoods for those living in rural areas.
The project’s goals include enhancing rural access and climate resilience, strengthening institutional capacity for managing rural road networks, and establishing a solid financial and institutional foundation for sustainable management of both rural and state road networks.
The total estimated cost of the RAAMP-SU project is $600 million, with the World Bank expected to provide 83.33% of the required funding. Participating states are required to have a fully functional Roads Fund and Roads Agency, including appointed boards and staff, as well as provisions for administrative costs in their state budgets.
The project presents an opportunity to promote women’s representation in the transport sector through the establishment of Rural Access and Agricultural Marketing Agencies (RARAs).
Funds allocated under RAAMP-SU will be distributed on a competitive basis among states, taking into account socioeconomic factors, readiness of project activities, and the state’s commitment to efficient infrastructure maintenance, including potential co-financing from their resources.
The loan, once secured, will significantly contribute to improving rural road infrastructure and agricultural marketing, ultimately benefiting millions of rural inhabitants and enhancing the overall agricultural sector in Nigeria.
