The Federal Government of Nigeria is pursuing a $500 million loan from the World Bank to develop rural roads and improve agricultural marketing. The Resettlement Policy Framework for the Nigeria Rural Access and Agricultural Marketing Project Scale-Up (RAAMP-SU) by the Federal Ministry of Agriculture and Rural Development outlines the plan to address the dire need for better connectivity for 92 million rural Nigerians who currently lack access to good roads.
Nigeria’s extensive road network covers approximately 194,000 kilometers, including federal, state, and rural roads, with a road density of 0.21 kilometers per square kilometer. However, only 25.5% of the rural population resides within 2 kilometers of an all-weather road, leaving 92 million people without proper connectivity. This lack of access is particularly acute in economically disadvantaged areas, underscoring the necessity to expand and maintain the rural road network.
The World Bank is expected to provide 83.33% of the $600 million project cost, significantly higher than its initial commitment of $280 million for the parent project. The RAAMP-SU project will finance three key 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 are required to establish fully functional Roads Funds and Agencies with appointed boards, staff, and budget provisions for administrative costs. The project also aims to foster women’s representation in the transport sector. Funds will be allocated competitively based on socioeconomic factors, project readiness, and states’ commitment to infrastructure maintenance and potential co-financing.
The policy framework stipulates that resettlement and compensation plans must be in place before any project activities that cause displacement, ensuring that compensation and assistance are provided prior to displacement.
The RAAMP-SU project aims to improve rural access and climate resilience, boosting agricultural potential and marketing for rural communities and enhancing rural livelihoods. Its objectives include improving rural access, strengthening institutional capacity for road management, and establishing a sustainable financial and institutional framework for managing rural and state road networks. This initiative extends the earlier RAAMP, supported by the World Bank and the French Development Agency, and is led by the Federal Department of Rural Development within the Federal Ministry of Agriculture and Rural Development. The project’s board approval is anticipated on November 28, 2024.
Credit: Nairametrics (Text Excluding Headline)
