The African Development Bank (AfDB) is set to lend Nigeria $500 million this year as part of a $1 billion budget support programme aimed at strengthening the country’s economic reforms under President Bola Tinubu.
A Reuters report obtained by Nigeriastartupact.ng quoted an executive of the bank confirming that the loan will support Nigeria’s ongoing fiscal and macroeconomic reforms introduced since President Tinubu assumed office.
Bode Oyetunde, who represents Nigeria and São Tomé and Príncipe on the AfDB board, said the loan could 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 said during the Nigerian Economic Summit in Abuja.
He explained that Nigeria initially requested $1.5 billion, but the AfDB could only provide $1 billion spread over two years. “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,” he said.
Nigeria, Africa’s largest economy, has embarked on major policy changes since May 2023. The Tinubu administration has removed fuel subsidies, unified foreign exchange rates, and introduced tax reforms to stabilise public finances and attract foreign investment.
Oyetunde also noted that the African Development Bank is focusing on fiscal and power sector reforms as part of its financial support programme for Nigeria. The initiative is expected to enhance economic stability, promote infrastructure growth, and strengthen investor confidence in the country’s reform-driven economy.