31 October 2017

Nigeria: AfDB Denies 'Calling Off' Loans to Nigeria

Photo: The Guardian

The African Development Bank Tuesday said it has not "called off loans to Nigeria", noting that it is in consultations with the Nigerian government on how best to continue its support for its laudable Economic and Growth Recovery Plan (ERGP) through investment projects

A Reuters report had suggested that the AfDB refused to "release the second, $400 million tranche of a $1 billion loan to shore up its budget for 2017" opting to, instead, "put it directly into projects."

The Reuters report cited the Bank's Vice-President for Power, Energy, Climate and Green Growth Amadou Hott as its source.

But in a statement on Tuesday, AfDB said it is highly encouraged by the economic recovery of Nigeria from the recession and salutes the Government's efforts towards diversification of the economy.

"The Bank also strongly supports the Economic and Growth Recovery Plan of the Government and efforts to stem corruption and strengthen fiscal consolidation and efficiency," it said.

"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.

"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 African Development Bank is 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."

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