AGS NEWS – The Federal Government of Nigeria is seeking a $500 million loan from the World Bank to improve rural road infrastructure and agricultural marketing nationwide.

The World Bank stated that the loan would address the significant need for better connectivity in rural areas, where 92 million people currently lack access to good roads.

This request was detailed in the final draft of the Resettlement Policy Framework for the Nigeria Rural Access and Agricultural Marketing Project Scale-UP (RAAMP-SU), overseen by the Federal Ministry of Agriculture and Rural Development.

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The RAAMP-SU project aims to enhance rural access and climate resilience, boosting agricultural potential and marketing prospects for rural communities.

The project’s objectives include improving rural access, strengthening institutional capacity for rural road network management, and ensuring the sustainable management of both rural and state road networks.

This initiative extends the earlier Rural Access and Agricultural Marketing Project, also supported by the World Bank and the French Development Agency.

The Federal Department of Rural Development within the Ministry of Agriculture leads the project, with oversight by the Federal Project Management Unit.

The policy document noted that Nigeria has a relatively extensive road network of about 194,000 kilometers, including 34,000 kilometers of federal roads, 30,000 kilometers of state roads, and 130,000 kilometers of rural roads.

However, the rural accessibility index is only 25.5 percent, leaving approximately 92 million rural residents without proper road connectivity.

The RAAMP-SU project, estimated to cost $600 million, will receive 83.33 percent of its funding from the World Bank. This funding will cover three main components: Improvement of Resilient Rural Access ($387 million), Climate Resilient Asset Management ($158 million), and Institutional Strengthening and Project Management ($55 million).

States participating in the project must have a fully functional Roads Fund and Roads Agency with appointed boards and staff, and budget provisions for administrative costs.

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The project will also encourage women’s representation in the transport sector.

The implementation of resettlement and compensation plans is a prerequisite for project activities that cause resettlement, ensuring that necessary measures are in place before any land acquisition or access restrictions.