AfDB Approves $500 Million Loan to Support Nigeria’s Economic Reforms in 2025
The African Development Bank (AfDB) has announced plans to extend a $500 million loan to Nigeria in 2025 as part of a $1 billion economic support package designed to strengthen the country’s fiscal stability and reform programs.
According to the AfDB, the financial assistance will help Nigeria sustain its ongoing economic reforms initiated by President Bola Ahmed Tinubu’s administration, particularly in areas such as foreign exchange unification, fuel subsidy removal, and fiscal policy restructuring.
The bank stated that the support aims to boost macroeconomic stability, promote inclusive growth, and protect vulnerable households affected by recent policy adjustments. The first disbursement of the fund is expected to be released in 2025 once the necessary approvals are finalized.
Nigeria, Africa’s largest economy, has experienced economic challenges marked by high inflation, currency depreciation, and increased living costs following the removal of fuel subsidies in 2023. Despite these short-term hardships, global financial institutions have commended the government’s bold reforms, viewing them as essential steps toward long-term economic recovery and sustainability.
AfDB President Dr. Akinwumi Adesina reaffirmed the Bank’s commitment to supporting Nigeria, saying the institution will continue to partner with the country in implementing policies that promote growth, infrastructure development, and improved living standards.
The $500 million loan will be directed toward critical sectors such as infrastructure, energy, agriculture, and social investment programs, aligning with Nigeria’s medium-term development plan and AfDB’s regional integration strategy.
Experts believe the financial support reflects renewed confidence in Nigeria’s reform agenda and could encourage further foreign investment and private sector participation in 2025.
