AfDB Poised to Approve Additional $500 Million Loan for Nigeria in 2025

The African Development Bank (AfDB) is preparing to lend Nigeria $500 million in 2025 as part of a broader $1 billion budget support programme aimed at bolstering ongoing economic reforms in the country.

Bode Oyetunde, Nigeria and São Tomé and Príncipe’s representative on the AfDB board, disclosed the plan during an interview with Reuters on the sidelines of the 31st Nigerian Economic Summit held on Monday. According to Oyetunde, the loan could receive board approval before the end of 2025.

The funding is part of the AfDB’s backing for President Bola Tinubu’s administration, which has implemented sweeping macroeconomic reforms since taking office. Oyetunde described the reforms as “very bold and aggressive,” noting that the bank is committed to supporting the government’s efforts.

“Nigeria requested $1.5 billion in support. We are providing $1 billion over two years,” Oyetunde explained. “Last year, we disbursed $500 million, and this year, we’re looking at another $500 million, subject to approval by the board.”

He added that the AfDB’s support is focused particularly on reforms in the fiscal and power sectors, which are key to unlocking economic growth and sustainability in Nigeria.

The move follows the Nigerian government’s announcement in November 2023 that it had secured approval from the Federal Executive Council (FEC) for a $1 billion budget support loan from the AfDB.

The latest tranche, if approved, will further strengthen Nigeria’s access to external financing amid efforts to stabilise its economy and implement structural reforms.