The Federal Government is seeking a $500 million loan from the World Bank to enhance rural road infrastructure and agricultural marketing across the federation.
The international lender stated that the fund aims to address the urgent need for better connectivity in rural Nigeria, where 92 million people currently lack access to good roads.
This request is detailed 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 Federal Ministry of Agriculture and Rural Development.
The RAAMP-SU project seeks to improve rural access and climate resilience, thereby boosting agricultural potential and marketing prospects for agrarian communities, ultimately enhancing livelihoods for the rural populace.
The project’s objectives include enhancing rural access and climate resilience, strengthening institutional capacity for rural road network management, and establishing sustainable management for rural and state road networks.
RAAMP-SU 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 policy document noted: “Nigeria’s road network is relatively extensive, encompassing approximately 194,000 kilometres of roads, including 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 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 percent, 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 need to expand and enhance the rural road network and conserve rural road and transport assets.”
The total cost of the RAAMP-SU project is estimated at $600 million, with the World Bank expected to provide 83.33 percent of the required funding.
The commitment amount is 79 percent higher than the initial World Bank commitment amount of $280 million for the parent project.
The project will finance three key components: the Improvement of Resilient Rural Access ($387 million), Climate Resilient Asset Management ($158 million), and Institutional Strengthening and Project Management ($55 million).
According to the policy document, states wishing to participate in the project must have a fully functional Roads Fund and Roads Agency with appointed boards and staff, and administrative costs provisions in the state budget.
The document added, “While eligibility for state participation under RAAMP required drafting and placing Road Fund and Roads Agency bills in the State House of Assemblies, the new project requires states to have a fully functional Roads Fund and Roads Agency with appointed boards and staff, and provision for administrative costs in the state budget. Additionally, RARAs offer an opportunity to foster women’s representation in the transport sector.
“The RAAMP-SU funds will be allocated on a competitive basis between states, considering a refined socioeconomic selection matrix to increase rural access to basic services and promote food security; activity readiness in terms of design; and states’ demonstrated commitment to efficient infrastructure maintenance, including potential co-financing from their resources.”
The policy framework stipulates that the implementation of resettlement and compensation plans is a prerequisite for project activities causing resettlement. Compensation and other assistance must be provided before displacement, ensuring that necessary measures for resettlement and compensation are in place before any land acquisition or restriction of access.
