With the aim of stimulating Africa’s largest economy, the African Development Bank (AfDB) approved a $600 million loan for Nigeria on Wednesday.
According to a Reuters report, the loan will be part of a larger $1 billion stimulus package. In order to qualify for the remaining $400 million, however, Nigeria will have to implement fiscal reforms, Ousman Dore, the AfDB Nigeria director, disclosed.
“The economic recovery plan that the government is working on must be a package of comprehensive reforms, including even exchange rate policy, the consistency with regards to the monetary policy and structural reforms,” Mr. Dore said.
He explained that if Nigeria implements such reforms, the remaining $400 million could be approved by the bank early next year.
Nigeria entered a recession in August of this year, largely due to its overdependence on crude oil, the price of which has been plummeting since 2014.