AfDB denies calling off Nigeria’s $600m loans

The African Development Bank has denied as untrue reports that it called off loans it granted to Nigeria.

The AfBD had in November 2016 approved a $600m loan to support Nigeria’s efforts to cope with macroeconomic and fiscal shocks arising from the massive decline in price of crude oil.

AfDB’s Director, Communication and External Relations, Dr. Victor Oladokun, in a statement on Tuesday, said the debt forgiveness was reported by Reuters and credited to AfDB Vice-President for Power, Energy, Climate and Green Growth Amadou Hott.

The statement stressed the bank’s continued support to the Federal Government’s Economic and Growth Recovery Plan.

It 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. 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.

“In November 2016, the Board of the African Development Bank approved a $600m 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 $400m 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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