The African Development Bank (AfDB) will lend Nigeria $500 million this year as part of a $1 billion budget support program, following the economic reforms introduced by President Bola Tinubu, an executive director of the bank said on Monday.
According to Reuters, Bode Oyetunde, who represents Nigeria and São Tomé and Príncipe 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 on the sidelines of the Nigerian Economic Summit in Abuja.
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“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,” he added.
Since President Tinubu took office in May 2023, Nigeria, Africa’s most populous nation, has embarked on sweeping economic changes, including the removal of fuel subsidies, the unification of foreign exchange rates, and the implementation of tax reforms aimed at stabilizing public finances and attracting investment.
Oyetunde further noted that the AfDB’s support program is focused on fiscal and power sector reforms to strengthen Nigeria’s long-term economic stability and growth.
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Image Credit: Reuters
