Executive Director representing Nigeria and São Tomé and Príncipe at the African Development Bank (AfDB),Dr Oyebode Oyetunde, says the bank approved a fresh $500 million support package for Nigeria because the government has delivered “tremendous change and progress” in key economic reforms.
Speaking in an interview with ARISE News on Tuesday, Oyetunde said the latest approval brings the bank’s total support to $1 billion over two years, reflecting strong confidence in Nigeria’s reform trajectory.
He said:“Nigeria’s $1 billion support comprises four different operations. On 24 November, we approved the $500 million Economic Governance and Energy Transition Support Programme. It is a two-stage programme. We had $500 million last year. There were very clear deliverables in two areas – power and fiscal reforms.
“Over the year, we have seen tremendous change and progress in the reforms. The board was confident enough to approve another $500 million, bringing it to $1 billion over two years.”
Explaining the reforms that impressed the bank, Oyetunde said:
“In the power sector, the Energy Transition Plan was put in place. We added deregulation of TCN, so it is no longer its own regulator. Policy documents have been released. Earlier this year, we were in Tanzania with then-President Adesina and President Bola Ahmed Tinubu signing the Energy Compact for Nigeria. That will show how we transform Nigeria’s energy situation.”
He added that the AFDB is working closely with the World Bank under Mission 300, a joint effort to lift 300 million Africans out of energy poverty by 2030.
Oyetunde said ongoing projects across the country show improved performance.
“We approved the $140 million Akure water project. And we had a project focused on agriculture, the SAPZ. We did $210 million last year and recently approved another $200 million on 1 December. We also have another operation lined up called NAGS for agriculture, which is $100 million and will come up for board approval later this year.”
On the question of risk, especially given Nigeria’s challenges with corruption, insecurity and weak infrastructure, Oyetunde noted that such difficulties are continent-wide, not unique to Nigeria.
“The challenge is not specific to Nigeria. It is across the continent. The AFDB exists to lend to 54 African member countries. Some are high-risk, some medium-risk, some low-risk, but all have their challenges. We are active in conflict areas like South Sudan and Somalia, and in transition states. Nigeria is the only country with its own regional directorate.”
He stressed that the bank remains committed to Nigeria, saying:
“We have had a transition and now have President Seedy Oumarou, but our commitment to Nigeria is strong. We look at the challenges and see how we can intervene to address them. Everyone is facing issues such as fiscal constraints, unemployment and insecurity.”
Oyetunde said the AFDB only releases funds when reforms show measurable progress.
“Many of these projects are in phase two. If you reform, we provide the funds. The board was satisfied that Nigeria made enough progress to justify the second stage.”
On improving power supply for everyday Nigerians, he said:
“There are many issues to address. Under the leadership of President Tinubu, there is deregulation so states can regulate their own markets. The challenge is not generation; we have between 8 and 12 gigawatts capacity. It is transmission. We have operations focused on that. With TCN no longer being its own regulator, we hope to see better progress. This will lead to better metering, availability and affordability of power.”
He added that the bank is investing heavily in solar and distributed power solutions to support Nigeria’s climate and net-zero commitments.
On job creation, Oyetunde said:
“We expect to create about one million jobs through these initiatives – about 700,000 indirect and 300,000 direct. This creates employment and gainful activity, which helps address insecurity.”
He also emphasised the AFDB’s continental influence, saying:
“The African Development Bank is very influential. People listen to us and to our presidents. We can encourage African countries, including Nigeria, to reform and improve socioeconomic outcomes.”
As part of wider capacity support, he said the bank is strengthening oversight and project implementation within government.
“We are providing direct support for our middle-income technical assistance facility to enhance the capacity of project completion units like the Department of International Relations and the Ministry of Finance so they can do their work more optimally.”
Boluwatife Enome
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