Nigeria to receive fresh $500m AfDB loan for budget support

Nigeria to receive fresh $500m AfDB loan for budget support

The African Development Bank (AfDB) is set to lend Nigeria $500 million in 2025 as part of its $1 billion budget support programme aimed at strengthening the country’s ongoing macroeconomic and fiscal reforms.

AfDB Board representative of Nigeria, São Tomé and Príncipe, Bode Oyetunde, disclosed this in an interview with Journalists on the sidelines of the 31st Nigerian Economic Summit (NES) in Abuja on Monday.

Oyetunde said the loan, which is the second tranche of the AfDB’s two-year support package, could be approved before the end of 2025.

He noted that the Bank remains committed to backing the very bold and aggressive reforms being implemented by President Bola Tinubu’s administration.

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“Given all these reforms, it was important to support Nigeria. They asked us for $1.5 billion. We are able to do $1 billion over two years. Last year, we provided $500 million in budget support. This year, we are looking to do another $500 million, subject to board approval,” Oyetunde said.

The AfDB board member said the facility will focus on fiscal and power sector reforms, which are central to improving Nigeria’s economic stability and growth prospects.

He recalled that in November 2023, the Federal Executive Council (FEC) approved a $1 billion budget support loanfrom the AfDB to strengthen the federal government’s fiscal capacity and accelerate reform implementation.

Oyetunde reaffirmed the Bank’s confidence in Nigeria’s reform direction, noting that the support programme is designed to help the government sustain momentum in stabilising the economy, boosting revenue, and improving power sector efficiency.

Nigeria to receive fresh $500m AfDB loan for budget support