African Development Bank (AfDB) has announced plans to extend a $500 million loan to Nigeria this year as part of a $1 billion budget support programme, citing the country’s ongoing economic reforms under President Bola Tinubu as a major factor driving its decision.
Bode Oyetunde, executive director representing Nigeria and São Tomé and Príncipe on the AfDB Board, disclosed this on Monday during the Nigerian Economic Summit in Abuja.
He said the facility, which is subject to board approval, could be finalized before the end of the year.
According to Oyetunde, the bank is providing the funding in recognition of Nigeria’s “bold and aggressive macroeconomic reforms” since President Tinubu assumed office in May 2023.
He noted that the AfDB intends to sustain its support for the country’s fiscal consolidation and structural transformation agenda.
“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 on the sidelines of the summit.
“They asked us for $1.5 billion. We are able to do $1bn 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.”
The $500 million loan represents the second tranche of a two-year, $1bn budget support initiative designed to bolster Nigeria’s fiscal resilience and accelerate policy reforms in key economic sectors. The first tranche, amounting to $500m, was disbursed in 2024.
Since President Tinubu took office, Nigeria has implemented a series of sweeping economic measures, including the removal of long-standing fuel subsidies, unification of the foreign exchange market, and the introduction of comprehensive tax reforms.
These steps aim to stabilize public finances, attract foreign investment, and restore confidence in the nation’s economy.
Oyetunde further explained that the AfDB’s engagement is focused on supporting Nigeria’s fiscal discipline and power sector reforms, two critical areas that underpin sustainable growth and job creation.
