The recent approval of $495.3 million (about N79.2billion) International Development Association (IDA) credit that would boost agricultural produce in the country, is a commendable effort if the facility is properly utilized for the purpose for which it was granted. The grant, which will be managed by the Federal Ministry of Water Resources, effective October 1, this year, is specifically aimed at improving farmers’ access to irrigation and drainage services, strengthening institutional arrangements for integrated water resources management and improve delivery of agricultural services in selected projects in the northern states of the country.
The grant is part of the World Bank’s pet project code-named “Transforming Irrigation Management in Nigeria (TRIMING). About 140,000 farmers are expected to benefit from the grant which is also expected to improve 27,000 existing hectres of land in addition to 23,000 new hectres of land in all the northernstates earmarked. Besides, the facility aims to mobilize private sector investment.
Interestingly, the World Bank Country Director for Nigeria, Marie Francois Marie-Nelly has given reasons that Nigeria deserves the fund. According to her, considering Nigeria’s determination to diversify and integrate its national economy for the benefit of the citizens, the project will assist to advance that diversification effort by restoring agricultural productivity, creating job opportunities for a large number of unskilled young people as well as creating conditions for growth and peace in the northern part of the country.
We recognise why the North was chosen for this large-scale public schemes. There is overriding need for peace in the region  that is currently split down the middle by activities of insurgents. Beyond that, the North has  large but unexploited arable land. Therefore, such projects if implemented effectively, will increase farm productivity, reduce the risk of  flooding and improve the lives and well-being of millions  of idle youths in the north.
There is no doubt that the grant, if judiciously used, could bring agriculture back to its pre-eminent, position as the second income earner after oil. Even now, agriculture remains a key sector of the economy, reportedly accounting for 22 percent of Nigeria’s Gross Domestic Product (GDP) as at 2012.The World Bank facility will also support the ongoing Federal Government’s Agricultural Transformation Agenda (ATA), set up to drive rural income growth, accelerate achievement of food and nutritional security as well as generate the much-needed employment.
Our major concern, however,  is the mode of disbursing the grant to ensure that the target group of farmers are,  indeed, the ultimate beneficiaries of the facility. If our past experience is a veritable guide, loans or grants taken from multi-lateral financial institutions did not meet their objectives due to misapplication or diversion of the fund or both. The result often is that such loans add up to the already existing high external debt.  Though the details of repayment of the grant are not disclosed, our expectation is that the mode of repayment is zero interest. The major fear of developing economies such  as Nigeria is that loans from either the World Bank or the International Monetary Fund (IMF) are fraught with debilitating conditionalities that leave the economy prostrate and the citizens worse off. It is, therefore, necessary to know what the conditionalities are (if any)so that the country does not get into another debt overhang that might impoverish the people.
Over all, we hope the grant will mark a turning point by expanding food production and economic transformation necessary to reduce the present high level of poverty and boost prosperity.

World Bank’s grant for agric projects