The Federal Government of Nigeria is on course to secure a $500 million loan from the African Development Bank (AfDB) before the end of 2025. This loan forms part of a larger $1 billion budget support programme aimed at reinforcing Nigeria’s fiscal and structural reforms under President Bola Tinubu’s administration.
Bode Oyetunde, Nigeria and São Tomé and Príncipe’s representative on the AfDB Board, confirmed that discussions with the bank are progressing positively, with approval potentially coming before the close of the year. Oyetunde highlighted AfDB’s strong support for Nigeria’s “very bold and aggressive” macroeconomic reforms, including fuel subsidy removal, exchange rate unification, and tax system reforms.
The $1 billion support will be disbursed over two years, with $500 million already provided in 2024. The upcoming $500 million tranche will primarily support fiscal management and power sector reforms, which are critical to Nigeria’s economic stability and investor confidence.
The budget support programme is expected to cushion the fiscal impact of ongoing reforms and aid government efforts to address inflation, improve energy supply, and promote sustainable economic growth.
This financial assistance underscores AfDB’s commitment to backing Nigeria’s economic transformation agenda, reinforcing policies designed to stabilize public finances and attract investment.
In addition to this loan, President Tinubu has also sought parliamentary approval for other foreign loans totaling $2.8 billion to support the national budget and refinance Eurobonds maturing in 2025.
The AfDB loan marks a significant milestone in Nigeria-AfDB relations and is a crucial pillar in strengthening the country’s macroeconomic framework.
