The African Development Bank (AfDB) is set to provide Nigeria with $500 million this year as part of a $1 billion budget support programme — a move that strengthens President Bola Tinubu’s bold economic reforms. Bode Oyetunde, the AfDB’s Executive Director for Nigeria and São Tomé and Príncipe, told Reuters during the Nigerian Economic Summit in Abuja that the bank’s board could approve the new loan before the end of the year.
‘We have been working strongly to support Nigeria’s very bold and aggressive macroeconomic reforms under President Tinubu. Given all these reforms, it was important to support Nigeria,’ Oyetunde said. He explained that Nigeria had initially sought $1.5 billion, but the AfDB approved $1 billion to be disbursed over two years, with $500 million already released in 2024 and another $500 million planned for this year.
Since taking office in May 2023, President Tinubu has rolled out far-reaching reforms — removing fuel subsidies, unifying exchange rates, and introducing new tax policies aimed at restoring fiscal discipline and boosting investment. While these steps have earned international praise, they have also brought short-term hardship, with inflation rising and consumer spending power shrinking.
Economists believe the AfDB’s fresh funding will help cushion these effects while maintaining the momentum of Tinubu’s reform drive. The loan focuses on fiscal and power sector reforms — areas crucial to improving Nigeria’s productivity and long-term competitiveness.
The AfDB has remained one of Nigeria’s strongest development partners, supporting major projects in energy, agriculture, and infrastructure. Analysts at the summit described the new loan as a clear vote of confidence in Tinubu’s leadership and Nigeria’s reform trajectory, signalling optimism to global lenders and investors watching Africa’s largest economy.
