The African Development Bank (AfDB) has agreed to provide Nigeria with a $500 million budget support loan this year as part of a $1 billion programme aimed at strengthening fiscal and economic reforms under President Bola Tinubu’s administration.
Nigeria’s Executive Director at the AfDB, Bode Oyetunde, confirmed the development on Monday during the 31st Nigerian Economic Summit in Abuja. He said the new loan is expected to be approved before the end of the year.
“We have been working strongly to support Nigeria’s very bold and aggressive macroeconomic reforms under President Tinubu. Given all these reforms, it was important to support Nigeria,” Oyetunde told Reuters.
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He explained that the AfDB had already provided $500 million in 2024 and would disburse another $500 million this year to complete the $1 billion budget support arrangement. The loan will focus on key areas such as fiscal reforms and power sector development to promote sustainable growth.
Since assuming office in May 2023, President Tinubu’s administration has implemented several policy measures, including the removal of fuel subsidies, the unification of exchange rates, and broad tax reforms aimed at stabilising public finances and attracting investment.
Oyetunde, who also represents São Tomé and Príncipe on the AfDB board, noted that the bank remains committed to supporting Nigeria’s reform agenda and helping the government achieve macroeconomic stability through strategic financing.
