Bank denies cutting Nigeria off $400 million loan

The African Development Bank (AfDB) has denied recent reports that it has called off its $400m million loan to the Nigerian Government with quotes credited to the organisations Vice-President for Power, Energy, Climate and Green Growth, Amadou Hott.

Hott was quoted as saying that the AfDB is likely to take at least some of the second tranche of a N1 billion loan and "put it directly into projects."

In a press statement released on Tuesday, October 31, 2017, the organisation revealed that contrary to the report, the Nigerian government enjoys its full support in its efforts to diversify its economy and boost economic growth and development.

The statement read, "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 $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."