African Development Bank (AfDB) on Tuesday said it could consider Nigeria for an additional $400 million loan if such a request was approved by its board.

In a statement issued through its Director, Communications and External Relations, Dr. Victor Oladokun, the bank said the proposed $400 million which was to be used to fund the country’s budget would now be directly channeled towards funding infrastructure projects in the country.

The statement is coming on the heels of a report by Reuters on Monday quoting a Vice President of the AfDB, Amadou Hott as saying that the bank had called off the proposed $400 million loan to Nigeria.

The statement read in part: “The African Development Bank wishes to categorically refute the statement that it has called off loans to Nigeria as reported in Reuters and credited to the AfDB Vice-President for Power, Energy, Climate and Green Growth, Amadou Hott.

“The African Development Bank is highly encouraged by the economic recovery of Nigeria from recession and salutes the government’s efforts towards diversification of the economy.

“The bank also strongly supports the Economic Growth and Recovery Plan of the government and efforts to stem corruption and strengthen the fiscal consolidation and efficiency.”

The statement added that the AfDB was consulting with the Nigerian government on how best to continue to support its laudable programmes through investments and projects that will help address existing structural challenges including power, agriculture and to also provide support that would boost private sector and create jobs.

The Board of the AfDB had in November 2016, approved a $600 million loan to support Nigeria’s effort to cope with macroeconomic and fiscal shocks that emanated from the massive drop in the world price of crude oil.