The Bank approved the credit February 27, 2013 during its Board of Directors meeting in Abidjan, Ivory Coast.
It is to “finance the Transport Sector and Economic Governance Reform Programme and the Nigeria Country Strategy Paper (CSP) for the period 2013-2017,” the AfDB said.
According to the lender, the loan aims to support the Nigerian government to accelerate reform implementation in the areas of transport sector governance, and public expenditure management.
“Reform measures include the establishment of a Federal Road Authority, National Road Maintenance Fund, Road-Tolling Policy, and Axel Load Control Policy,” it added.
In the areas of public financial management reform, the AfDB said the programme involves the adoption of International Public Sector Accounting Standards (IPSAS), Internal Audit Modernization Plan, Treasuring Single Account (TSA), Government Integrated Public Financial Management (GIFMIS), and Transparency and Compliance in Procurement and Audit Practices.
The programme will also create fiscal space for increased investment in road infrastructure development, it stated.
By Ekow Quandzie