AfDB denies reports it has cut off $400 million loan to Nigeria

By AT editor - 1 November 2017 at 4:10 am
AfDB denies reports it has cut off $400 million loan to Nigeria

The African Development Bank (AfDB) said Tuesday that it has not decided to call off loans to Nigeria, countering widespread media reports that the support for the West African nation’s ailing economy was withdrawn.

“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,” the AfDB said in a statement issued to “categorically refute” the prior reporting.

That reporting was based on comments made by AfDB Vice-President for Power, Energy, Climate and Green Growth Amadou Hott, who spoke with Reuters at a conference Monday in Oslo, Norway.

AfDB says that in November 2016, its board approved a USD$600-million loan to support Nigeria’s efforts to cope with shocks that arose from falling oil prices. “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,” AfDB said.

The Abidjan-based bank praised the Nigerian Economic and Growth Recovery Plan released earlier this year, and the country’s efforts to stem corruption and strengthen fiscal consolidation and efficiency. AfDB said it continues to meet with Nigerian officials on how best to support investments and target infrastructure, power and agriculture sector challenges.

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

Image: Yemi Osinbajo/Nigeria

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