The Federal Government is in talks with the African Development Bank (AfDB) to secure a $500 million budget support loan this year, as part of a broader $1 billion programme tied to Nigeria’s ongoing economic reforms under President Bola Tinubu.
According to a Reuters report, Bode Oyetunde, the AfDB Executive Director representing Nigeria and São Tomé and Príncipe, said the loan could be approved before the end of 2025.
“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 on the sidelines of the Nigerian Economic Summit in Abuja.
He explained that the Federal Government initially requested $1.5 billion, but the AfDB agreed to provide $1 billion spread 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 added.
The financial package follows a series of sweeping policy measures introduced since President Tinubu took office in May 2023, including the removal of fuel subsidies, unification of foreign exchange rates, and tax reforms aimed at boosting fiscal stability.
Oyetunde noted that the AfDB’s current engagement with Nigeria focuses on fiscal sustainability and power sector reforms, both of which are seen as critical to improving investor confidence and driving economic recovery.
