The African Development Bank (AfDB) is set to approve an additional $500 million loan to support Nigeria’s ongoing fiscal and power sector reforms before the end of 2025.
This was disclosed by Bode Oyetunde, AfDB Board Representative for Nigeria, São Tomé and Príncipe, during an interview with journalists on the sidelines of the 31st Nigerian Economic Summit (NES31) in Abuja on Monday.
Oyetunde explained that the loan represents the second tranche of the AfDB’s two-year $1 billion support package to Nigeria, designed to reinforce the government’s reform-driven economic agenda under President Bola Tinubu.
“Given all these reforms, it was important to support Nigeria. They asked us for $1.5 billion, but we were 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 stated.
He emphasized that the facility will focus primarily on fiscal and power sector reforms, which are central to improving Nigeria’s economic stability, energy reliability, and growth prospects.
Oyetunde also recalled that in November 2023, the Federal Executive Council (FEC) approved a $1 billion AfDB budget support loan to strengthen fiscal capacity and accelerate the implementation of key structural reforms.
