AFDB Refutes Claim of $400m Nigeria Loan Cancellation

African Development Bank (AFDB) in a statement has refuted the statement that it has “called off loans to Nigeria”, as reported in Reuters and credited to AFDB Vice-President for Power, Energy, Climate and Green Growth Amadou Hott.

It had earlier been reported that the regional multilateral development bank had called off a $400m loan to Nigeria that would help fund the Country’s budget for 2017, as the government tried to reinvigorate Africa’s biggest economy with heavy spending.

Showing its supports for Nigerian Government’s economic recovery efforts, AFDB in the statement said “The African Development Bank is highly encouraged by the economic recovery of Nigeria from recession and salutes the Government’s efforts towards diversification of the economy.”

In November 2016, the Board of the African Development Bank approved a $600-million loan to support Nigeria’s efforts to cope with macroeconomic and fiscal shocks, that arose from the massive decline in price of crude oil.

AfDB had been in talks with Nigeria for around a year to release the second tranche of $400m of a $1bn loan to shore up its budget for 2017.

“An additional $400 million in support could be considered, if requested and approved by the Board, as part of a larger coordinated effort with other development partners, including the World Bank and the International Monetary Fund” the bank noted.

African Development Bank is said to be in consultations with the Government on how best to continue its support for its laudable Economic and Growth Recovery Plan through investment projects that will help address existing structural challenges, including infrastructure, power, agriculture and support to boost private sector and job creation.

The Bank assures the Nigerian Government of its full support for its continued reforms to diversify the economy and boost economic growth and development.