FG Eyes $500m Loan for Rural Road Infrastructure to Improve Agriculture

By Adedapo Adesanya

The federal government is seeking a $500 million loan from the World Bank for rural road infrastructure and agricultural marketing.

In the final draft of the Resettlement Policy Framework for the Nigeria Rural Access and Agricultural Marketing Project Scale-UP (RAAMP-SU) implemented by the Ministry of Agriculture and Rural Development, the fund is expected to address the need for better connectivity in rural Nigeria, where 92 million people currently lack access to good roads.

“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 policy document noted.

The RAAMP-SU project aims to improve rural access and climate resilience, thereby boosting agricultural potential and marketing prospects for rural communities. This, in turn, will contribute to better livelihoods for the rural populace.

The project’s objectives include improving rural access and climate resilience of communities in served rural areas, strengthening institutional capacity for rural road network management, and fortifying the financial and institutional foundations for sustainable management of rural and state road networks.

The RAAMP-SU initiative is an extension of the earlier Rural Access and Agricultural Marketing Project, supported by the World Bank and the French Development Agency. The project is led by the Federal Department of Rural Development within the Federal Ministry of Agriculture and Rural Development, with oversight by the Federal Project Management Unit.

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 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.”