The African Development Bank, AfDB, has withdrawn a loan to Nigeria that would have helped fund the country’s budget.
It has instead redirected the money to specific projects, a vice president at the lender said yesterday, according to Reuters.
The AfDB had been in talks with Nigeria for around a year to release the second, $400 million tranche of a $1 billion loan to shore up its budget for 2017, as the government tried to reinvigorate its stagnant economy with heavy spending.
In late 2016, the AfDB agreed to lend Nigeria the first tranche of $600 million out of $1 billion. But negotiations over economic reform later bogged down, blocking attempts to secure the second tranche of $400 million, sources told Reuters then.
Now, AfDB’s loans will be more targeted, Hott said.
“It’s hundreds of millions of dollars, just in one go, that we were supposed to provide in budget support, but we will move into real projects… “ he said.