Dipo Olowookere
By Dipo Olowookere
The management of African Development Bank (AfDB) has refuted a report by Reuters that it (AfDB) has called off its $400 million loan to the Nigerian government aimed to support the country’s economic recovery process.
Last year, Nigeria officially went into recession due to decline in the prices of crude oil, the country’s major source of foreign exchange (forex) as well as drop in the volume of oil produced as a result of attacks by militants on oil facilities in the oil-rich Niger Delta region of the nation.
In order to revive the economy, the Nigerian government sought help outside and in November 2016, the board of AfDB 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 (IMF).
But yesterday, Reuters quoted AfDB Vice-President for Power, Energy, Climate and Green Growth, Amadou Hott, as saying that the bank had “called off loans to Nigeria.”
Reacting to this in a statement issued on Tuesday, the continental lender said it “strongly supports Nigerian government’s economic recovery efforts” and that the loan was still intact contrary to the report, which emanated on Monday.
According to the statement issued by AfDB, it emphasised that consultations were ongoing with the Nigerian government on how best to continue its support for its laudable Economic and Growth Recovery Plan (EGRP) through investment projects that will help address existing structural challenges, including infrastructure, power, agriculture and support to boost private sector and job creation.
“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,” the statement obtained by Business Post stated.
