June 14, (THEWILL) – Nigeria has again approached the World Bank to secure a $500 million loan aimed at enhancing rural road infrastructure and supporting agricultural marketing across the country.
The request, which was contained in the final draft of the Resettlement Policy Framework, is part of the Nigeria Rural Access and Agricultural Marketing Project Scale-Up (RAAMP-SU), executed by the Federal Ministry of Agriculture and Rural Development.
The RAAMP-SU project is focused on enhancing rural access, increasing climate resilience, and boosting the agricultural economy by improving marketing channels for farming communities.
According to the World Bank, the loan is designed to improve connectivity in rural areas, where an estimated 92 million people currently suffer inadequate road access.
The policy document noted: “Nigeria’s road network is relatively extensive, encompassing approximately 194,000 kilometres of roads. This includes 34,000 kilometres of federal roads, 30,000 kilometres of state roads, and 130,000 kilometres of registered rural roads. The road density equates to about 0.21 kilometres of roads per square kilometre.
“Despite this relatively high road density, the rural accessibility index for Nigeria (defined as the proportion of the rural population residing within 2 kilometres of an all-weather road) stands at a mere 25.5 per cent, resulting in approximately 92 million rural inhabitants lacking connectivity.
“Rural access is particularly restricted in areas densely populated by the economically disadvantaged. These factors underscore the imperative to expand and enhance the rural road network, as well as conserve rural road and transport assets.”
The total cost of the RAAMP-SU project is estimated at $600m, with the World Bank expected to provide 83.33 per cent of the required funding.
The project will finance three key components, including Improvement of Resilient Rural Access ($387m), Climate Resilient Asset Management ($158m), and Institutional Strengthening and Project Management ($55m).
According to the policy document, states willing to participate in the project are required to have a fully functional Roads Fund and Roads Agency with appointed boards and staff, and provisions for administrative costs in the state budget.
It added that “While the eligibility for state participation under RAAMP required the drafting and placement of Road Fund and Roads Agency bills in the State house of assemblies, the new project would require the States to have a fully functional Roads Fund and Roads Agency with appointed boards and staff, and provision for administrative costs made in the state budget. In addition, RARAs offer an opportunity to foster women’s representation in the transport sector.
“The RAAMP-SU’s funds will be allocated on a competitive basis between states factoring in a refined socioeconomic selection matrix to increase rural access to basic services and promote food security; activities readiness in terms of design; and state’s demonstrated commitment in the projected infrastructure efficient maintenance, including potential co-financing from their resources.”
