The African Development Bank (AfDB) is set to release $500 million to Nigeria before the end of 2025 as part of a $1 billion budget support package designed to cushion the impact of ongoing macroeconomic reforms.
AfDB’s Executive Director representing Nigeria and São Tomé and Príncipe, Dr. Bode Oyetunde, confirmed the development to Reuters on Monday during the 31st Nigerian Economic Summit in Abuja.
According to him, the AfDB board is expected to approve the second tranche before year-end, following the successful release of the first $500 million in 2024.
“We’ve been working strongly to support Nigeria’s bold and aggressive macroeconomic reforms under President Tinubu. Given all these reforms, it was important to support the country,” Oyetunde said.
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He revealed that Nigeria had initially requested $1.5 billion, but the bank approved $1 billion to be disbursed over two years — half in 2024 and the remaining half in 2025, pending board approval.
Since assuming office in May 2023, President Bola Tinubu’s administration has rolled out several sweeping economic policies, including the removal of petrol subsidy, foreign exchange unification, and the introduction of tax and fiscal reforms aimed at stabilising public finances and attracting foreign investment.
Oyetunde explained that the AfDB’s support programme prioritises fiscal management, power sector reforms, and governance improvements, describing the reforms as “painful but necessary” to restore investor confidence and ensure long-term stability.
In November 2023, Finance Minister Wale Edun announced that the Federal Executive Council had approved a $1 billion AfDB loan to support Nigeria’s budget deficit and reform agenda.
This facility aligns with AfDB’s broader effort to help member nations navigate post-COVID fiscal challenges, rising debt, and global inflationary pressures.
Nigeria has recently intensified engagements with multilateral lenders such as the World Bank and the IMF to strengthen social safety nets, stabilise its balance of payments, and sustain infrastructure spending despite dwindling revenues.
If approved, the new $500 million loan will fund key initiatives in power sector reforms, agricultural value chains, and fiscal consolidation.
