AfDB Plans $500M Budget Support Loan for Nigeria's Fiscal Reforms

The African Development Bank (AfDB) has committed to provide Nigeria with a $500 million budget support loan this year, completing a $1 billion two-year program aimed at backing President Bola Tinubu's ambitious macroeconomic reforms. These reforms include the removal of fuel subsidies, unification of foreign exchange rates, and broad tax reforms designed to stabilize public finances and attract investment. Bode Oyetunde, Nigeria's Executive Director at the AfDB, confirmed that the loan would focus on fiscal and power sector reforms critical to sustaining Nigeria's economic growth and achieving macroeconomic stability. The initial $500 million was disbursed in 2024, and the second installment is expected to be approved before the end of 2025. The AfDB emphasized its strong support for Nigeria's reform agenda under President Tinubu's administration, reflecting the bank's commitment to helping the country maintain its economic transformation. This funding is part of a broader $1.5 billion request from Nigeria, with the AfDB able to commit $1 billion over two years.