The African Development Bank Board of Directors on Wednesday approved a $600m loan for Nigeria, several months after the Federal Government had approached the lender for a budget-support facility. The loan is meant to help Nigeria plug its budget deficit as the nation grapples with its first recession in more than 20 years.
The $600m loan is the first tranche of a total $1bn budget support package, according to a Reuters report quoting a senior bank official. The second disbursement of $400m would be dependent upon the implementation of reforms and expected early next year, the bank Nigeria country director Ousmane Dore, said The President, AfDB, Dr. Akinwunmi Adesina, had on September 26 said the bank was working on giving Nigeria loan facilities of $4.1bn between now and next year for critical sectors of the economy.
The loans include $1bn at a concessionary interest rate of 1.2 per cent for Nigeria to address the 2016 budget deficit and aid her economic recovery.
