Budget Support: AfDB Considers $500 Million Loan For Nigeria

By Ayodele Oni

As part of a $1 billion budget support programme, the Federal Government has approached  the African Development Bank (AfDB) for  $500 million loan.

A Reuters report quoting an executive of the bank said the loan is part of a $1 billion budget support programme, following economic reforms introduced by President Bola Tinubu.

The move, the report added, followed the economic reforms introduced by President Bola Tinubu, aimed at stabilising public finances and attracting investment.

According to Bode Oyetunde, who represents Nigeria and São Tomé and Príncipe on the AfDB board, the loan could be approved before year-end.

Oyetunde explained that the bank has been working strongly to support Nigeria’s bold and aggressive macroeconomic reforms under President Tinubu.

The AfDB had previously provided $500 million in budget support to Nigeria last year, and Oyetunde said the bank was looking to provide another $500 million this year, subject to board approval.

The bank’s support programme focused on fiscal and power sector reforms, which are crucial for Nigeria’s growth and macroeconomic stability.

The development comes after several economic reforms introduced by the Tinubu administration, including the removal of fuel subsidies, introduction of unified foreign exchange rates, and launching of tax reforms.

The reforms aimed to promote economic stability, attract investment, and improve the business environment in Nigeria.

The AfDB’s support is expected to ease fiscal pressures, strengthen reform implementation, and provide liquidity for developmental programs.

This move signaled a vote of confidence in Nigeria’s policy direction and may catalyze additional multilateral and private sector funding.