World Bank Set To Approve $500 Million Loan For Nigeria, Marking 10th Disbursement Under Tinubu

Abuja, Nigeria– The Board of the World Bank Group is expected to meet today (Friday) to approve a $500 million loan bid from the Nigerian government under the leadership of President Bola Tinubu.

This loan is earmarked for the Rural Access and Agricultural Marketing Project—Scale Up, aimed at improving rural access to key services and markets.

The project intends to enhance infrastructure connectivity between rural communities and broader marketplaces, facilitating smoother access to agricultural markets, schools, and hospitals.

Meanwhile, according to a document obtained by PUNCH outlines the requirements for states wishing to participate in a new project funded by the World Bank. States must have a fully operational Roads Fund and Roads Agency, complete with appointed boards and staff, and budgetary provisions for administrative costs.

The document states, “For states to participate in the new project, they must have a functional Roads Fund and Roads Agency with appointed boards and staff, as well as provisions for administrative costs in the state budget. This follows from the previous requirement under RAAMP, which mandated the drafting of Road Fund and Roads Agency bills in state assemblies.”

The document further highlights the potential for the project to increase women’s representation in the transport sector through RARAs.

Funds under the RAAMP-SU will be allocated competitively, based on criteria including: (a) a refined socioeconomic matrix to enhance rural access to services and food security, (b) readiness in terms of project design, and (c) a state’s commitment to efficient infrastructure maintenance, including possible co-financing from their own resources.

Additionally, the document notes that resettlement and compensation plans must be implemented for any project activities that result in resettlement.

If approved, this project will be the 10th loan from the World Bank during President Bola Tinubu’s administration. Over the past 16 months, the Federal Government has secured loans totaling $6.45 billion from the World Bank.

This figure includes recent approvals for three loans totaling $1.57 billion, with further increases expected in the coming months.

Previous loans secured under President Tinubu’s leadership have supported projects such as women empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), and resource mobilization reforms ($750 million).