The African Development Bank (AfDB) plans to lend Nigeria $500 million this year as part of a $1 billion budget support package, backing President Bola Tinubu’s sweeping economic reforms.
Bode Oyetunde, Nigeria’s representative on the AfDB board, confirmed the plan during the Nigerian Economic Summit in Abuja, saying the loan could be approved before the end of 2025.
According to Oyetunde, the AfDB is supporting Nigeria’s “bold and aggressive macroeconomic reforms” under President Tinubu, which include:
- The removal of fuel subsidies
- A unified foreign exchange rate
- Broad tax and fiscal reforms aimed at strengthening public finances
“These reforms are significant, and it’s important we back them,” Oyetunde said.
A Two-Year, $1 Billion Commitment
Nigeria had requested $1.5 billion, but the AfDB will provide $1 billion over two years. Half of which was already disbursed in 2024.
“Last year, we provided $500 million in budget support. This year, we’re looking to do another $500 million, subject to board approval,” Oyetunde explained.
The funding is expected to ease fiscal pressure, stabilize the naira, and create space for continued reform.
Focus on Power and Fiscal Stability
Oyetunde said part of the programme will target reforms in public finance management and the power sector, both seen as critical to long-term economic recovery.
The AfDB’s involvement signals growing international confidence in Nigeria’s reform agenda, despite challenges such as inflation and high living costs following subsidy removal.
The AfDB’s $500 million loan marks a strong endorsement of Nigeria’s economic reform drive under President Tinubu. If approved, the funds will help stabilize public finances and accelerate key projects in energy and fiscal restructuring.