Nigeria: AfDB confirms $400-million loan

By on November 1, 2017

The African Development Bank (AfDB) Tuesday debunked Reuters report indicating that the African lending institution was redirecting $400-million loan requested by the Nigerian Federal government to shore up it 2017 deficit budget.
“The African Development Bank (www.AfDB.org) wishes to categorically refute the statement that it has “called off loans to Nigeria”, as reported in Reuters and credited to AfDB Vice-President for Power, Energy, Climate and Green Growth Amadou Hott,” the bank said in a statement.
Confusion over talks between Abuja and the Abidjan-based bank for an assistance floated after Reuters reports following an interview with Vice-President for Power, Energy, Climate Change & Green Growth, Amadou Hott on Monday indicated that the Bank was no longer eager to back the Nigerian government’s efforts to overcome the economic and fiscal struggle.
According to Reuters both parties still are discussing conditions for the release of the second tranche ($400 million).
Abuja reportedly refused the terms by the international lenders, including the World Bank, to enact various reforms, including allowing the Naira to float freely on the foreign exchange market.
The AfDB in 2016 approved $600-million loan to the Nigerian federal government to support it to address economic and fiscal challenges cause by the sharp collapse of oil price on the international market.
Tuesday, the Bank reiterated its collaboration with Nigeria noting that it strongly supports the ‘Economic and Growth Recovery Plan and efforts to stem corruption and strengthen fiscal consolidation and efficiency.’

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