The African Development Bank (AfDB) announced in statement published on November 2 that it has granted Nigeria a $600 million loan which is to be directed into the country’s Economic Governance, Diversification and Competitiveness Support Programme (EGDCSP).

This sum is the first tranche of a $1 billion budget support loan. The last tranche, $400 million, will be released in 2017.

The operation is part of a two fiscal year (2016-2017) programme of counter-cyclical fiscal support from the AfDB to help the federal government of Nigeria implement reforms that aim to boost efficiency in the its business environment, fight corruption and promote the diversificafition and competitiveness of the economy. The loan will allow Nigeria create fiscal space to facilitate the implementation of its budget, support fiscal and structural reforms, and improve the targeting of social sector spending to protect the most vulnerable segments of the population.

With AfDB’s support programme, it is expected that Nigeria’s non-oil revenues will increase by 8% in 2016, amid global oil slump which hit the nation’s revenues as more than 90% of its exports revenues and at least 70% of its overall earnings come from the commodity.

Walid Khefifi