The Federal Government of Nigeria is seeking a $500 million loan from the African Development Bank (AfDB) this year, according to a report by Reuters.
The loan forms part of a $1 billion budget support program aimed at backing economic reforms introduced by President Bola Tinubu.
Bode Oyetunde, Nigeria and São Tomé and Príncipe’s representative on the AfDB board, said the loan could receive approval before the end of the year.
“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 during the Nigerian Economic Summit in Abuja.
Oyetunde explained that Nigeria requested $1.5 billion, but the bank can provide $1 billion over two years. Last year, the AfDB extended $500 million in budget support, and this year another $500 million is planned, subject to board approval.
The development follows a series of economic reforms since Tinubu assumed office in May 2023, including the removal of fuel subsidies, implementation of unified foreign exchange rates, and the launch of tax reforms.
Oyetunde added that the AfDB’s support program will also focus on fiscal reforms and improvements in the power sector.
