The Federal Government of Nigeria is seeking to secure a $500 million loan from the African Development Bank (AfDB) before the end of 2025, in a bid to reinforce ongoing economic reforms under President Bola Tinubu’s administration.
According to a report by Reuters, the loan forms the second tranche of a $1 billion budget support programme initiated last year.
Bode Oyetunde, Nigeria’s representative on the AfDB board, confirmed the development during the Nigerian Economic Summit held in Abuja, saying the bank is actively working to support Nigeria’s “bold and aggressive” macroeconomic reforms.
“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 told Reuters.
Since assuming office in May 2023, President Tinubu has launched a series of sweeping economic reforms, including: fuel subsidy removal, unification of foreign exchange rates and overhaul of Nigeria’s tax system.
These policies, though controversial, have drawn the attention and backing of international lenders such as the World Bank, IMF, and now the AfDB, which sees the reforms as necessary steps toward long-term macroeconomic stability.
AfDB Support Focused on Fiscal and Power Sector Reforms
The AfDB says its financial assistance is tied to progress on key structural reforms, particularly in: fiscal discipline and public finance management and electricity and power sector sustainability.
Oyetunde stated that the bank remains committed to Nigeria’s transition, especially in areas that unlock investment and improve the country’s credit profile.
