AfDB to Approve $500 Million Loan for Nigeria Before Year-End — Reuters

The African Development Bank (AfDB) is set to approve a $500 million loan for Nigeria before the end of 2025 as part of a $1 billion budget support programme aimed at backing the country’s ongoing economic reforms.

According to a Reuters report, the loan is part of a broader effort to support reforms introduced by President Bola Tinubu’s administration, including fuel subsidy removal, foreign exchange unification, and tax restructuring.

Bode Oyetunde, Nigeria’s Executive Director at the AfDB, who also represents São Tomé and Príncipe, confirmed the development on the sidelines of the Nigerian Economic Summit in Abuja.

“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.

He added that the AfDB plans to disburse the funds in two phases 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.

The AfDB’s intervention is expected to bolster Nigeria’s fiscal stability and support reforms in the power and public finance sectors, areas Oyetunde described as critical to sustaining economic growth.