Nigeria is expected to receive $500 million from the African Development Bank (AfDB) before the end of this year as part of a $1 billion budget support programme aimed at reinforcing the country’s economic reforms.
Executive Director of the AfDB representing Nigeria and São Tomé and Príncipe, Dr. Bode Oyetunde, confirmed the development on Monday at the 2025 Nigerian Economic Summit in Abuja.
Oyetunde said the financial support follows President Bola Tinubu’s bold macroeconomic reforms, which have reshaped the fiscal and monetary framework of Africa’s largest economy.
“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 the AfDB had committed to providing $1 billion in total budget support to Nigeria over two years — with $500 million disbursed in 2024 and another $500 million scheduled for approval before the end of 2025, subject to the Bank’s board review.
“They asked us for $1.5 billion. We are able to do $1 billion over two years. Last year, we provided $500 million in budget support. This year, we are looking to do another $500 million, subject to board approval,” he stated.
The facility is designed to help Nigeria consolidate ongoing economic reforms, including the removal of fuel subsidies, foreign exchange unification, tax law overhaul, and fiscal adjustments targeted at stabilising public finances and boosting investor confidence.
Oyetunde added that the AfDB’s engagement focuses on fiscal and power sector reforms, aligning with the Federal Government’s efforts to restore efficiency, strengthen institutions, and diversify the economy away from oil dependency.
Nigeria has faced persistent fiscal pressures from high debt servicing, limited non-oil revenue, and a weakened naira. The AfDB loan is expected to support government expenditure priorities, sustain liquidity, and improve policy execution across critical sectors.
The Tinubu administration has implemented several structural measures to rebuild the economy, including energy market deregulation, tighter public borrowing discipline, and a renewed push for infrastructure financing.
The AfDB’s continued budget support underscores the Bank’s confidence in Nigeria’s reform trajectory and its potential to attract more private capital into key sectors such as power, transport, and agriculture.
“Our commitment reflects AfDB’s long-standing partnership with Nigeria and our belief that the current reforms will yield sustainable growth if maintained,” Oyetunde added.
Nigeria’s previous $500 million tranche from the AfDB in 2024 was used to stabilise budgetary operations and strengthen social investment programmes affected by the initial impact of subsidy removal and currency unification.
With the new disbursement, total AfDB budget support to Nigeria will reach $1 billion, making it one of the Bank’s largest policy-based support interventions in West Africa.
