The Bola Tinubu administration is poised to secure another loan from the World Bank, raising eyebrows and sparking debates among Nigerians.
This time, the Federal Government is seeking $500 million to enhance rural access and agricultural marketing in the country.
The loan, if approved, will be the tenth secured by the Tinubu government since it came into office in May 2023.
Documents from the World Bank reveal that the proposed loan is intended for the Rural Access and Agricultural Marketing Project—Scale Up (RAAMP-SU).
The project aims to improve the lives of rural dwellers by connecting them to larger markets, schools, and hospitals while also fostering social cohesion in these often-overlooked areas.
“The funds will address critical gaps in rural infrastructure and promote food security,” the document stated.
States intending to participate in the project are required to establish a functional Roads Fund and Roads Agency.
“These agencies must have appointed boards and staff, with provisions for administrative costs included in the state budget,” the document further explained.
A significant aspect of the RAAMP-SU initiative is its focus on inclusivity.
The plan seeks to enhance women’s participation in the transport sector, creating opportunities for marginalized groups in rural areas.
“Funds will be allocated competitively based on socioeconomic criteria, readiness of project designs, and the commitment of states to infrastructure maintenance,” the proposal noted.
This includes a requirement for states to implement resettlement and compensation plans for affected individuals before any project activities commence.
Observers have noted that if approved, this loan will add to the growing debt profile of the country under Tinubu’s leadership.
Since assuming office, the Tinubu administration has secured $6.45 billion in loans from the World Bank in just 16 months.
The most recent addition to this figure came from three new loans worth $1.57 billion, approved for various development projects in Nigeria.
Critics have raised concerns about the sustainability of this borrowing spree, questioning the administration’s long-term plan to manage the rising debt.
“What is the government’s strategy to repay these loans?” asked financial analyst Chike Anayo.
“Every loan has a repayment deadline, and the burden will ultimately fall on taxpayers,” he added.
Some Nigerians have expressed mixed feelings about the loans.
While some believe that these funds are necessary for development, others worry about their implications for the nation’s future.
“It’s a good initiative if the funds will genuinely improve rural access,” said Maryam Usman, a farmer in Kaduna.
“But we have seen cases where loans like these disappear into thin air,” she added with skepticism.
The government, however, insists that the loans are vital to achieving economic growth and addressing pressing challenges.
“We are committed to ensuring that these funds are used transparently and effectively,” an unnamed government spokesperson said.
Projects previously funded by World Bank loans under Tinubu include renewable energy ($750 million), girls’ education ($700 million), and women empowerment ($500 million).
The administration has also borrowed for economic stabilization reforms and resource mobilization, among other initiatives.
