African Development Bank gives Nigeria $600 million loan

LAGOS, Nigeria – The African Development Bank says it is loaning Nigeria $600 million to help with a budget deficit of $7 billion.

A bank statement Wednesday says another $400 million will be approved next year if the government implements reforms to economize on government costs, combat corruption and promote diversification in Africa’s biggest economy.

Nigeria is struggling through its first recession in 20 years, caused by low oil prices, militant attacks that have cut petroleum production and a heavy dependence on oil that provides 90 per cent of exports and 70 per cent of government revenue.

Nigeria had requested the loan in February. It has failed to raise another $4 billion to plug the deficit.

Nigeria’s Senate refused Tuesday to consider President Muhammadu Buhari’s request to seek $30 billion in foreign loans.

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