The African Development Bank (AfDB) will lend Nigeria $500 million this year as part of a $1 billion budget support programme, following the economic reforms introduced by President Bola Tinubu.
Bode Oyetunde, Nigeria’s executive director at the AfDB, confirmed the development on Monday during the Nigerian Economic Summit in Abuja.
Oyetunde, who also represents São Tomé and Príncipe on the AfDB board, said the loan could be approved before the end of the year.
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“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,” he told Reuters.
“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.”
Since Tinubu assumed office in May 2023, his administration has embarked on sweeping reforms, including the removal of fuel subsidies, unification of foreign exchange rates, and broad tax reforms aimed at stabilising public finances and attracting investment.
Oyetunde said the AfDB’s support programme focuses on fiscal and power sector reforms, which are considered key to sustaining Nigeria’s growth and macroeconomic stability.