The Federal Government of Nigeria is seeking to secure a $500 million loan from the African Development Bank (AfDB) before the end of the year as part of ongoing efforts to stabilize the economy and support key reforms introduced under President Bola Tinubu’s administration.

 

 

 

According to a Reuters report, the loan forms part of a larger $1 billion budget support programme aimed at reinforcing Nigeria’s fiscal and structural reforms. The move follows a previous $500 million tranche disbursed last year under the same arrangement.

 

 

 

 

Bode Oyetunde, Nigeria and São Tomé and Príncipe’s representative on the AfDB Board, confirmed the development during the Nigerian Economic Summit in Abuja. He explained that discussions with the bank were progressing positively, and approval could come 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 told Reuters.

 

 

 

 

 

He added, “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.”

 

 

 

The funding aligns with the AfDB’s commitment to back Nigeria’s economic transformation agenda, which has included fuel subsidy removal, the unification of exchange rates, and ongoing tax system reforms since Tinubu assumed office in May 2023.

 

 

 

Oyetunde further noted that the AfDB’s intervention would focus primarily on fiscal management and power sector reforms, areas critical to improving Nigeria’s macroeconomic stability and restoring investor confidence.

 

 

 

The proposed loan is expected to help cushion the fiscal impact of the reforms while supporting government programmes aimed at addressing inflation, improving energy supply, and promoting sustainable economic growth.