The World Bank is expected to approve a $500 million loan to Nigeria on Friday, marking the 10th loan under President Bola Ahmed Tinubu’s administration.
This loan is part of the Rural Access and Agricultural Marketing Project – Scale Up, designed to enhance rural access and agricultural marketing in the country.
The loan aims to close the gap between communities and the broader marketplace in Nigeria.
A major prerequisite for participation in the project is that subnational entities must have a fully functional Roads Fund and Roads Agency with appointed boards and staff, and provisions for administrative costs in the state budget.
If approved, this will bring the total amount of loans secured by the Federal Government under President Tinubu to $6.45 billion in 16 months.
The World Bank has previously approved loans for various projects in Nigeria, including power, women empowerment, girls’ education, renewable energy, economic stabilization reforms, and resource mobilization reforms.
Nigeria’s debt has risen to N134.3 trillion as of June 2024, and the country’s loan amount is expected to surge further by the end of the year.
Former President Olusegun Obasanjo and economists like Muda Yusuf have raised concerns over Nigeria’s rising debt profile and its implications for future generations.
However, the IMF, few months ago, forecasted a decline in Nigeria’s debt burden.
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