AfDB to Lend Nigeria $500 Million in Budget Support Amid Ongoing Reforms

The African Development Bank (AfDB) has confirmed plans to lend Nigeria $500 million in budget support before the end of 2025, reinforcing its partnership with Africa’s largest economy. The funding forms part of a $1 billion support program aimed at helping Nigeria stabilize its finances and advance crucial economic reforms.

According to Bode Oyetunde, Nigeria’s representative on the AfDB Board, the loan proposal is awaiting board approval and could be disbursed within the year. Speaking during the Nigerian Economic Summit in Abuja, Oyetunde emphasized that the initiative reflects the bank’s confidence in the Nigerian government’s reform agenda.

Nigeria had initially sought $1.5 billion from the AfDB, but the bank approved a phased approach—allocating $500 million in 2024 and planning another $500 million in 2025. This move highlights AfDB’s continued support for Nigeria’s fiscal and structural adjustments.

Since assuming office in May 2023, President Bola Ahmed Tinubu has implemented far-reaching reforms, including the removal of fuel subsidies, unification of exchange rates, and tax restructuring to expand government revenue. These policies, though challenging, are designed to restore investor confidence and strengthen the nation’s fiscal stability.

Oyetunde noted that the AfDB is monitoring Nigeria’s progress closely, especially in sectors like energy, taxation, and public finance. The goal, he said, is to ensure that the reforms deliver long-term growth and improve living standards for millions of Nigerians.

If approved, the AfDB Nigeria budget support loan will play a vital role in funding the 2025 federal budget, easing fiscal pressure while sustaining reform momentum. Economic observers see this as a significant vote of confidence from the international community, reinforcing Nigeria’s position as a key African growth hub.