African Development Bank on Wednesday approved a loan of $600 million for Nigeria to help with a budget deficit of $7 billion.
The bank also said in a statement Wednesday said another $400 million would be approved next year if the government implemented reforms to economize on government costs, combat corruption and promote diversification in Africa’s biggest economy.
Nigeria had requested the bank loan in February.
It has failed to raise another $4 billion to plug the deficit, amid reports the International Monetary Fund also is demanding more reforms.
The president of the African Development Bank, Nigerian Akinwumi Adesina, indicated in September that the bank would increase its investment in Nigeria by $4.1 billion between 2016 and 2017, and up to $10 billion by 2019, stating “Nigeria is too big to fail” and promising the bank’s “strong support.”
Nigeria’s Senate on Tuesday refused to consider President Muhammadu Buhari’s request to seek $29.6 billion in foreign loans over three years to build infrastructure and boost employment.
AP
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