According to the Punch news, on Wednesday, the African Development Bank’s Board of Directors approved a $600m loan for Nigeria, several months after the Federal Government had approached the lender for a budget-support facility.

The loan is meant to help Nigeria plug its budget deficit as the nation grapples with its first recession in more than 20 years.

The $600m loan is the first tranche of a total $1bn budget support package, according to a Reuters report quoting a senior bank official.

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Dr. Akinwunmi Adesina

The President, AfDB, Dr. Akinwunmi Adesina, had on September 26 said the bank was working on giving Nigeria loan facilities of $4.1bn between now and next year for critical sectors of the economy.

According to the AfDB president, the package includes $1bn in budget support; $300m to create jobs for 185,000 youths; $250m towards infrastructure development in the North-East; $1m grant to deal with challenges of Internally Displaced Persons; $300m for infrastructure development around Abuja, and $200m for the Transmission Company of Nigeria to improve its facilities, among others.