The African Development Bank (AfDB) has announced plans to provide Nigeria with a $500 million loan as part of a broader $1 billion budget support programme to assist the country’s economic reform agenda. Bode Oyetunde, Nigeria and São Tomé and Príncipe’s representative on the AfDB board, confirmed that the funds are expected to be approved before the end of 2025, as reported by Reuters.
Nigeria initially requested $1.5 billion in financial assistance, and the AfDB committed to disbursing $1 billion over two years. Half of that amount was released in 2024, with the remaining $500 million scheduled for 2025 pending final board approval. Oyetunde said the funding aligns with Nigeria’s fiscal and power sector reforms designed to stabilize public finances and attract investment, Reuters reported.
Since President Bola Tinubu took office in May 2023, Nigeria has implemented sweeping reforms, including the removal of fuel subsidies, unification of foreign exchange rates, and the introduction of new tax measures. These steps have been central to the government’s efforts to restore fiscal credibility and strengthen relations with international lenders, as highlighted by Bloomberg.
Analysts say the AfDB’s renewed financial support could ease budgetary pressures and help Nigeria sustain its reform trajectory. However, they caution that long-term progress will depend on consistent policy implementation, transparency in the use of funds, and measures to reduce inflation and enhance power sector efficiency.
