Federal Government is in advanced talks with the African Development Bank (AfDB) to secure a $500 million loan before the end of the year, as part of efforts to stabilize the economy and support key reforms under President Bola Tinubu’s administration.
The loan is the second tranche of a $1 billion budget support programme initiated by the AfDB to reinforce Nigeria’s fiscal and structural reforms. A similar $500 million package was disbursed in 2024.
Bode Oyetunde, Nigeria and São Tomé and Príncipe’s representative on the AfDB Board, confirmed the development during the Nigerian Economic Summit in Abuja.
He said discussions with the bank were progressing positively and approval could be granted before the end of 2025.
“We have been working strongly to support Nigeria’s very bold and aggressive macroeconomic reforms under President Tinubu,” Oyetunde told Reuters.
“They asked us for $1.5 billion. We are able to do $1 billion over two years.”
The AfDB’s support aligns with Nigeria’s economic transformation agenda, which includes the removal of fuel subsidies, unification of exchange rates, and ongoing tax system reforms since Tinubu assumed office in May 2023.
Oyetunde noted that the intervention would focus on fiscal management and power sector reforms, which are critical to restoring macroeconomic stability and investor confidence.
The proposed loan is expected to cushion the fiscal impact of the reforms while supporting programmes aimed at curbing inflation, enhancing energy supply, and promoting sustainable growth.
